1997
1996
Provisions
These comprise:
Provision for deferred tax liabilities
Provision for pension liabilities
Provision for other personnel schemes
Other provisions
628,528
156,885
650,499
258,284
1,694,196
635,449
162,061
625,040
195,656
1,618,206
The provision for pension liabilities concerns pensions and
life annuities which have not been funded with third parties.
The average rate of interest used in calculating the present
value of the provision for pension liabilities, taking account
of applicable rates in the relevant countries, is 5% ('996:5%J.
A major part of this provision covers liabilities in Spain where
pension liabilities have to be placed outside the company
within two years.
The provision for other personnel schemes concerns several early
retirement and reorganization schemes. Additions due to
planned restructuring programmes are charged to the profit
and loss account of the year, with the exception restructuring of
interests acquired during the financial year; these form part of
the goodwill upon acquisition.
Other provisions comprise provisions formed for consolidated
participations and for sureties given. In addition,provisions
are formed for litigation and for costs relating to the introduction
of the Euro and for adjustments to software in regard to the
year 2000.
Some NLG t. 6 billion of the provisions (1996: NLG 1.5 billion)
has a term in excess of one year
Long-term debts Total More than Total More than
5 years
5 years
The debts becoming due and payable after
more than one year relate to:
Loans from credit institutions, in NLC,
interest 5.59%, redeemable in 2006
Loans from credit institutions, in FRF,
interest 4.1%, redeemable in 2001
250,000
269,440
250,000
266,320
Private contract loan, in NLG, interest 6.77%
redeemable on June 2, 2000
Other debentures and private contract loans,
average interest rate 6.7% (1996: 5.2%)
Other debts, interest free
182,580
56,554
908,574
150,000
76,292
25,497
351,789
311,576
64,504
792,400
150,000
28,280
23,680
51,960
In relation to the other debentures and private contract loans
securities in the form of mortgages have been given up to an
amount of NLG 790 million f1996: NLG 27 8 million).
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