Rabobank Nederland - Robeco.com

Contractual Obligations and Contingent Liabilities
The table below provides certain information concerning the payments coming due under our existing
contractual obligations at December 31, 2005.
Payments Due by Period
(in millions of euro) On demand/ > 1 year
undated < 1 year < 5 years > 5 years Total
Debt securities 4,115 64,656 38,797 27,757 135,325
Subordinated debt 34 - 64 2,547 2,645
Due to customers 144,139 34,395 4,131 3,794 186,459
Other long-term obligations consist of due to customers other than debt securities (liabilities for
deposits and savings, professional securities transactions and other client accounts). For further
information, see note 22 to the consolidated financial statements for the year 2005.
Contingent liabilities relate primarily to transactions in which the Rabobank Group stands surety for
commitments of third parties.
At December 31,
2005 2004
Contingent liabilities consist of:
Guarantees, etc. 7,021 6,550
Irrevocable letters of credit 1,223 1,199
Other contingent liabilities 18 43
Total contingent liabilities 8,262 7,792
Contingent liabilities secured by assets was € 243 million at December 31, 2005 compared to € 212
million at December 31, 2004.
Guarantees relate both to credit and non-credit substitute guarantees. Credit-substitute guarantees
are guarantees given by Rabobank Group entities in respect of credit granted to customers by a third party.
Many of them are expected to expire without being drawn on and therefore do not necessarily represent
future cash outflows.
Irrevocable letters of credit mainly secure payments to a third party for a customers foreign and
domestic trade transactions in order to finance a shipment of goods. The Rabobank Group’s credit risk in
these transactions is limited since these transactions are collateralised by the commodity shipped and are
of a short duration. Other contingent liabilities mainly relate to acceptances of bills and are of a short-term
nature. As described below, facilities mainly constitute unused portions of irrevocable credit facilities granted
to corporate clients. Many of these facilities are for a fixed duration and bear interest at a floating rate. Most
of the unused portion of irrevocable credit facilities is secured by customers’ assets or counter-guarantees
by the central government and exempted bodies under the regulatory requirements. Irrevocable facilities
also include commitments made to purchase securities to be issued by governments and private issuers.
Irrevocable facilities relate to all irrevocable facilities that could lead to lending.
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