The second month of 2023 produced the lowest loan origination volume we’ve seen in the last 12 months, with €6,5M worth of loans. Despite that, the total historical financed loan amount has reached €700,0M, out of which €406,3M has been repaid. As in January, Estonia and Lithuania both accounted for a third of the total volume, followed by Finland and Latvia. Although there are loan requests from Germany, we are not taking on new projects from that market, while we instead focus on recoveries.
February saw €6,1M worth of repayments. The average return was 7,5% with a total of 67 loans (including stage loans) repaid.
In Latvia, €0,6M worth of principal and three loan projects have been recovered with positive returns to investors during the past month. Loan project #2501 was funded in mid-2018 with a default date one year later. Recovery was delayed due to a hostile borrower, the liquidation process of the borrower, and the location (border town Valka), but with the help of our external debt collection partner, Conventus, we managed to take over the property and eventually sell it.
A positive was that the tenant of the property paid all the costs, and the property was well maintained during all these years. Two other projects (Marsa Gatve Bridge Loan and Zvaigznaja Bridge Loan) were funded in May of 2018 and defaulted in September of 2020. The assets were sold at auction, and we managed to cover part of the loans from the borrower’s other assets.
We will keep you informed about the credit portfolio quality monthly.