Capita appointed as servicer to Irish government bad bank in €80m contract

British business process outsourcer Capita been appointed servicer to the Irish government’s “bad bank” in a contract worth around €80m (£69m) over four years.

Capita Asset Services will act as primary and special loan servicer on loans held by the Natioanl Asset Management Agency in Ireland (NAMA), currently being managed on behalf of NAMA by special liquidators Irish Bank Resolution Corporation.

Capita will provide primary servicing for NAMA loans with nominal balances of €41 billion.

The contract commences today, and Capita will take on an additional 140 employees. It currently employs around 800 employees in Ireland and plans to double that number over the next three years.

Capita has acted as master servicer to NAMA since 2010, and will continue in this role.

Commenting on the deal, chief executive Paul Pindar said:

We are pleased to have been appointed to such an important mandate. The contract is an excellent strategic fit for Capita in that it fully complements our existing business in terms of services, clients and professional staff and we are pleased to welcome all new members of staff.