La banque d'un monde qui change 2004 - BNP Paribas

Consolidated FInancial statementsNOTE 8PROVISIONS FOR CREDIT RISKS AND COUNTRY RISKSIn millions of euros 2004 2003 2002At 1 January 11,705 13,029 13,171Net additions during the period 693 1,379 1,532Write-offs during the period covered by provisions (1,497) (1,724) (1,470)Translation adjustments and other changes (322) (979) (204)At 31 December 10,579 11,705 13,029Breakdown of provisions:• Provisions deducted from assets:- On interbank items (a) 284 256 416- On customer items (note 4) 8,770 9 ,506 10,347- On securities (a) 443 746 1,009Total provisions deducted from assets 9,497 10,508 11,772Including provisions for country risks 1,211 1,481 2,119• Provisions recorded under liabilities (note 19):- To cover off balance sheet commitments 428 505 570- To cover credit risks 654 692 469- To cover industry risks - - 218Total provisions recorded under liabilities 1,082 1,197 1,257Including provisions for country risks 258 314 309Total provisions for credit risks and country risks 10,579 11,705 13,029(a) Provisions on loans to credit institutions mainly concern financial credits (note 3) exposed to country risk. Provisions on securities shown in the above table primarily cover the country risk affectingsecurities held by the BNP Paribas Group.Provisions for credit risks on assets are deducted fromthe carrying value of the assets. Provisions recorded underliabilities include provisions for losses on off-balance sheetcommitments, provisions for claims and litigation, andprovisions for risks that are probable in light of currentor past events but the amount and timing of which cannotbe reliably determined.Provisions covering principal and interest on sovereignloans amounted to EUR 1,469 million at 31 December 2004(EUR 1,795 million at 31 December 2003 and EUR 2,428 millionat 31 December 2002).229BNP PARIBAS - ANNUAL REPORT 2004