The following table sets out the outstanding amounts that we have classified as impaired and the related allowances: Fully secured loans with past due amounts between 90 and 180 days that we have not classified  as impaired totalled $49 as at October 31, 2002 ($36 in 2001). During the years ended October 31, 2002, 2001 and 2000, we would ha ve recorded interest income of $172, $126 and $103, respecti vely, if we had not classified any loans as impaired. The following table sets out the continuity of our allowance for credit losses: Impaired loans,  Gross impaired Specific net of specific  amount allowance allowance 2002 2001 2002 2001 2002 2001 Residential mortgages $ 124 $ 132  $ 5 $ 6 $ 119 $ 126 Consumer instalment and other personal loans 53 64  4 8  49 56 Business and government loans 2,160 1,818  760 755  1,400 1,063 Total $ 2,337 $ 2,014  $ 769 $ 769  $ 1,568 $ 1,245 Our average gross impaired loans and acceptances were $2,150 for the year ended October 31, 2002 ($1,657 in 2001). Our average impaired loans, net of the specific allowance, were $1,351 for the year ended October 31, 2002 ($1,198 in 2001). Included in impaired loans are other real estate owned and securities received from customers in  satisfaction of their loans totalling $13 as at October 31, 2002 ($13 in 2001). Country risk Specific allowance  General allowance allowance (1) Total 2002 2001 2000 2002 2001 2000 2002 2001 2000 2002 2001 2000 Balance at beginning of year $ 769 $ 517 $ 372 $ 1,180 $ 1,080 $ 970 $  — $ — $8 5 $ 1,949 $ 1,597 $ 1,427 Provision for credit losses 820 880 290 — 100 110 — — (42) 820 980 358 Recoveries 68 40 44 — — — — — — 68 40 44 Write-offs (884) (698) (206) — — — — — (45) (884) (698) (251) Other, including foreign exchange rate changes (4) 30 17 — — — — — 2 (4) 30 19 Balance at end of year $ 769 $ 769 $ 517 $ 1,180 $ 1,180 $ 1,080 $  — $ — $ — $ 1,949 $ 1,949 $ 1,597 (1) We did not have any impaired loans to designated countries as at October 31, 2002 and 2001. NOTE 5 Other Credit Instruments The contractual amount of our other credit instruments represents the maximum undiscounted potential credit risk if the counter- party does not perform according to the terms of the contract before any amounts that could possibly be recovered under recourse or  collateralization provisions. A large majority of these commitments expire without being drawn upon. As a result, the total contractual amounts are not representative of the Bank’s likely credit exposure or liquidity requirements for these commitments.  The risk-weighted equivalent values of our other credit instruments are based on the rules for capital adequacy of the Superintendent of Financial Institutions Canada. The risk-weighted equivalent value is used in the ongoing assessment of our capital adequacy ratios. We use other off-balance sheet credit instruments as a method of meeting the financial needs of our customers. Summarized below are the types of instruments that we use: b Guarantees and standby letters of credit represent our obligation to make payments to third parties on behalf of our customers if our customers are unable to make the required payments or meet other contractual requirements; b Securities lending represents our credit exposure when we lend our securities, or our customers’ securities, to third parties should the securities borrower default on their redelivery obligation; b Documentary and commercial letters of credit represent our agreement to honour drafts presented by a third party upon com- pletion of specific activities; and Summarized below is information related to various commitments. b Commitments to extend credit represents our commitment to  our customers to grant them credit in the form of loans or other financings for specific amounts and maturities, subject to meeting certain conditions. Commitments to extend credit in respect of consumer instalment and credit card loans are excluded as the lines are revocable at our discretion. BMO FINANCIAL GROUP ANNUAL REPORT 2002 75 2002 2001 Contract Risk-weighted Contract Risk-weighted amount equivalent amount equivalent Credit Instruments Guarantees and standby letters of credit $ 11,902 $ 8,251 $ 10,216 $ 6,841  Securities lending 580 38 584 319 Documentary and commercial letters of credit 642 84 588 63  Commitments to extend credit Original maturity of one year and under 72,723 — 69,428 — Original maturity of over one year 21,765 9,787 25,001 10,155  Total $ 107,612 $ 18,160 $ 105,817 $ 17,378 