Following a competitive tendering process, Capita Asset Services (Ireland) Limited was selected to operate the Credit Guarantee Scheme under the Credit Guarantee Act 2012.
The agreed charges under the terms of the contract are €199,000 plus VAT based on 1,875 loans per year for each of years 1 to 3. There is provision in the contract for revision of costs in years 2 and 3 depending on the uptake of the Scheme. The cost of the Scheme will be partially offset by receipts from the 2% premium paid by borrowers.
The Scheme went live on the 24th October 2012, and so far a total of €299,981.30 including VAT has been paid to the operator. This payment includes additional charges in respect of initial set up and implementation costs and charges in respect of training and lender accreditation costs and for the day to day running of the first quarter of the Scheme, for three lenders.