Year 1 Subsidy (£000) 2 Write Offs (£000) 3 Loans Repurchased (£000) 4 First Loss Claims (£000) 5 First Loss Repayments (£000) 6 Adjustment (£000) Total (£000) 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 Notes:Column 1 – The subsidy isthe payment made to the purchasing banks to cover the difference between thecommercial rate of interest the banks would normally charge and the rate ofinflation they are 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 paymentsmade for loans which are “repurchased” and returned to the government portfoliofor reasons of permanent disability or being medically unfit for work.Column 4 – First lossclaims, reimburse the purchasing banks for loans which become 24 months or morein arrears, as these loans no longer attract...