government’s attempt to define such a policy, the Board questions the feasibility of the options recently outlined in the addendum to the Fourth Policy Document on Physical Planning (VINEX). Moreover, the bank’s skepticism about how such a policy could be implemented in its present form is shared by many other companies and organizations. In an attempt to address some of the main pro blems that have been identified, the government has entered into discussions with various interest groups. However, as yet, the status of existing locations remains to be clarified, which is causing great difficulty with appraisal work. Nineteen ninety-one will also be remembered as the year in which environmental issues shifted to center stage. The Executive Board of FGH BANK recognizes the importance of adopting a profes sional approach to solving environmental problems and takes pride in the fact that FGH BANK’s expertise is being used to advise clients in this field. At present, the problems associated with soil pol lution are receiving much attention, as is the related issue of soil remediation. It is readily appa rent that environmental legislation scheduled to be introduced by the government will have a signifi cant impact on the realty market. In particular, the government’s desire to make landowners liable for the cost of soil clean-up measures and to make them responsible for reclaiming any expenditure from the original polluter is bound to make investors more cautious. Furthermore, the European Community is known to be preparing a directive, which would extend the chain of liability to companies financing real estate deals. Under the circumstances, it is not surprising that credit corpo rations active in the realty sector are reviewing how they should react to such legislation. As is the case with the government’s policy on development locations, many questions still remain to be answered about the implementation and effects of projected environmental legislation. In the coming period, it is also expected that the commercial real estate sector in the Netherlands will have to address a number of problems relating to the use of asbestos in buildings, which have already been highlighted in the USA. The performance of the Dutch arm of FGH BANK in 1991 was extremely encouraging, both in terms of the volume of business and the levels of profitability achieved. Business in the United States was badly affected by the economic recession in 1991. For the second year in succession, the realty market had to con tend with extremely difficult conditions. Market sentiment was at a particularly low level in the northeast of the country, where much of FGH BANK’s lending business in America is centered. The economic downturn in the USA has been far more severe than the recessionary forces in Europe, with the real estate sector being one of the chief casualties. Although it is not expected that condi tions will improve in the commercial real estate market in the USA in the near future, the propects for healthy investment yields remain good in the longer term. FGH BANK’s American subsidiary, FGH Realty Credit Corporation Inc., which has offices in New York, was unable to escape the general malaise in the real estate sector in 1991, which badly affected the results for the year. In order to strengthen the company’s mid to long-term position, a number of organizational changes were introduced. The Executive Board of FGH BANK is pleased to announce that FGH Appraisals Services Inc., which also operates from offices in New York, had an excellent year in 1991. REPORT OF THE EXECUTIVE BOARD Environmental aspects WÊÊM REVIEW OF ACTIVITIES The Netherlands United States

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Annual Reports FGH Bank | 1991 | | pagina 15