To ask the Scottish Executive what sums it has paid to the purchasing banks in each year since 1998 in respect of the student loans sold by HM Treasury in 1998 and 1999 and what obligations were covered by these sums.
The information requested isgiven in the following table:
. | 1 | 2 | 3 | 4 | 5 | 6 | Total |
(£000) Subsidy | (£000) Write Off’s | (£000) Loans Repurchased | (£000) First Loss Claims | (£000) First Loss Repayments | (£000) Adjustment |
1998-991 | 6,438 | 0 | 0 | 0 | 0 | -1 | 6,437 |
1999-2000 | 10,754 | 114 | 104 | 1 | 0 | 1,236 | 12,209 |
2000-01 | 12,471 | 52 | 83 | 1,596 | 0 | 638 | 14,840 |
2001-02 | 8,595 | 93 | 22 | 3,229 | -44 | -551 | 11,344 |
2002-03 | 8,610 | 95 | 25 | 2,349 | -108 | -326 | 10,645 |
2003-04 | 5,611 | 162 | 95 | 1,495 | -221 | -90 | 7,052 |
2004-05 | 5,075 | 193 | 41 | 1,134 | -217 | 999 | 7,225 |
2005-06 | 4,712 | 461 | 30 | 1,630 | -289 | 0 | 6,544 |
Note: 1 – Scottish Office Figures.
Column 1 – The subsidy is thepayment made to the purchasing banks to cover the difference between the commercialrate of interest the banks would normally charge and the rate of inflation theyare required to charge by the regulations.
Column 2 – Payments are madeto the purchasing banks for loans which are written off due to age or death.
Column 3 – Shows payments madefor loans which are “repurchased” and returned to the government portfolio for reasonsof permanent disability or being medically unfit for work.
Column 4 - First loss claims,reimburse the purchasing banks for loans which become 24 months or more in arrears,as these loans no longer attract the interest rate subsidy.
Column 5 - First loss repaymentsare deducted from the total Executive payment as loan repayments can still be receivedafter the first loss claim is put in place, i.e. after the bad debt is written off.
Column 6 - Adjustments can bemade to the figures in respect of year-end reconciliations between what has beenpaid by the DfES and the devolved administrations. Adjustments can also be madeto reflect accruals and differences in spend across financial years.