€7,0M worth of loans were financed by our investors in April, which was similar to March. Our core market in Estonia continues to perform consistently in 2023, with €3,1M in origination volume in April, followed by Lithuania (€1,7M), and Latvia (€1,1M). We expect to see the steady growth of the portfolio going forward, supported by new institutional investors who are focused mainly on Baltic loans.
The average return of repayments was 9,2% (in March 9,3%). The total repayment amount increased from €7,0M to €8,3M with a total of 68 loans (including stage loans) repaid.
During the last two weeks, one Latvian project with a total principal amount of €0,1M was recovered. The borrower repaid the loan after the maturity ended. We have become more strict in regards to defaulting loans during the past few weeks which has resulted in an all time high default rate. This strategy has helped us to put more pressure on late borrowers, who have consequently repaid their debts quicker. It also helps clear our portfolio of weaker projects.
The strategy of defaulting the loans immediately after they have been late for 90 days or after the maturity date has ended is supported by new regulations (previously no external rules were available). Furthermore, on the 8th of May, the Financial Supervisory Authority in Estonia issued a license to Estateguru to operate as a provider of crowdfunding services, giving it the right to provide loan mediation and investment-based crowdfunding services across Europe. Due to that, investors will start to see a more aggressive debt management policy, receive more information about new investment projects and their portfolio on our platform including ratings, statistics etc.
| As of 08.05.2023 | |
| Total financed loans since 2014 | €709,3M |
| Total repaid loans since 2014 | €418,0M |
| Total outstanding portfolio | €291,0M |
| Total outstanding defaulted loans | €125,0M |
| Total number of outstanding defaulted loans | 478 |
| Default rate (outstanding loans) | 42,9% |
| Partially recovered loans rate (outstanding loans) | 2,0% |
| Default rate (total financed loans) | 17,6% |
| Total amount of recovered loans (including partially) | €28,1M |
| Total number of fully recovered loans | 153 |
| Average return rate of fully recovered loans | 8,7% |
| Prolonged loans (outstanding loans) | €80,1M |
| Prolonged loans rate (outstanding loans) | 28,0% |
| Average time from default to recovery | 12,7 months |
| Write-off rate (total financed loans) | 0,006% |
