During August, the increased activity on the platform resulted in a strong loan origination volume of €18,4M. Most of this amount came from our oldest market Estonia (€8,1M), followed by Latvia (€3,2M) and Finland (€2,9M).
The repayments part of our portfolio also picked up and in August our investors received €13,1M worth of principal back in their accounts. We have changed the price list of extending loans in order to make it more profitable for investors and expensive for borrowers, which will result in more repayments during the last months of 2022.
The default rate increased to 8.4%, mainly due to defaults in Finland. A small recovery occurred in Estonia where a project with three collaterals was fully recovered (€0,1M). Large recoveries are expected to happen in Finland during October where one collateral has already been sold at auction (€2,0M) and, for the other, the buyer is finalizing the due diligence process (€3,5M). A letter of intent has been signed for our Spanish default (€1,8M), with expected payment to investors at the latest in the first week of November. Our active late loan management in Germany has resulted in many partial repayments and work to recover the rest is ongoing.
We will keep you informed about the credit portfolio quality monthly.
