NOTES ACCOMPANYING THE GROUP AND COMPANY BALANCE SHEETS (NLG x 1,000) 1989 Paid-in surplus 74,865 Statutory reserves 129,197 Other reserves 128,413 Exchange differences reserve (4,512) 327,963 In accordance with Article 389, Book 2, Title 9 of the Dutch Civil Code, it is no longer necessary, as from the beginning of the financial year 1990, to maintain a legally required reserve for undiscribed profits from participating interests, provided that such earnings remain freely available in the Netherlands. As a result of this change in regulations, the legally required reserve of NLG 103.5 million, which has been formed up to the end of 1989 in respect of the above participating interests, has been transferred to the other reserves. Reserves at the beginning of the year Movements: 264,432 - due to results 77,144 - due to net exchange differences (2,813) - preferred dividend (10,800) 327,963 Subordinated loans 1. Postbank N.V. 92,292 2. AEGON N.V. 100,000 192,292 This loan, placed in 1986, is subordinated in such a manner, that it can be considered part of the capital base of the company according to the standards applied by De Nederlandsche Bank N.V. The conversion rights attached to the subordinated loan granted by Postbank N.V., at an interest rate of eight percent (8%), have been rescinded. This loan will be taken over by AEGON N.V. in due course. The loan can be repaid at any time, since AEGON N.V. has now acquired the majority of the total shares of cumulative preferred “A” stock in issue. The loan will in any case be repaid commencing not later than the eleventh year following the payment date. Item 2 This loan, placed in 1986, with an interest rate of seven percent (7%), is subordinated in such a manner, that it can be considered part of the capital base of the company according to the standards applied by De Nederlandsche Bank N.V. 27 1990 EQUITY RESERVES 74,865 22,026 292,058 (16,912) 372,037 327,963 67,274 (12,400) (10,800) 372,037 92,292 100,000 192,292 ITEM 1

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Annual Reports FGH Bank | 1990 | | pagina 29