Notes to the consolidated cash flow statement

Amounts in EUR million, unless otherwise stated

13	Cash and cash equivalents

	2007	2006
Cash at bank and in hand	808	686
Short-term deposits	1,795	1,884
Money market investments	355	5,859
Short term collateral	5,473	4,715
At December 31	8,431	13,144

The carrying amounts disclosed reasonably approximate the fair values as at the year end.

EUR 9.0 billion (2006: EUR 10.0 billion) cash collateral is received of which EUR 5.5 billion is included in cash and cash equivalents. A corresponding liability to repay the cash is recognized in other liabilities (note 27). Refer to note 47 for a discussion of collateral received and paid. Investment of cash collateral received is restricted through limitations on credit worthiness, duration, approved investment categories and borrower limits. AEGON earns a share of the spread between the collateral earnings and the rebate paid to the borrower of the securities. Income from security lending programs was approximately EUR 23 million (2006: EUR 26 million; 2005: EUR 21 million).

The weighted effective interest rate on short-term deposits was 4.46% (2006: 4.21%) and these deposits have an average maturity of 6.39 days (2006: 4.31 days).

For the purposes of the cash flow statement, cash and cash equivalents comprise the following:

	Note	2007	2006
Cash and cash equivalents		8,431	13,144
Bank overdrafts		(1,046)	(753)
Net cash and cash equivalents		7,385	12,391

The majority of cash is not subject to any restrictions. However, the Dutch National Bank (DNB) requires AEGON The Netherlands to hold 2% of its assets relating to banking activities in an account with the DNB. This amount on deposit is reassessed on a monthly basis and carries interest at approximately 2%. The balance at the end of the year was EUR 81 million (2006: EUR 90 million).