ummer is in full swing, which is also evident in our loan volumes. During July our investors financed €11,8M worth of loans with Estonia contributing the most with €4,0M, followed by Latvia (€2,3M) and Lithuania (€2,2M).
We are seeing that both borrowers and investors are already more active during August, and we are expecting higher volumes as the holiday season comes to an end.
Repayments during July amounted to €4,4M, a figure reflective of seasonality and extensions. There were no major changes in late loans’ amounts. We are expecting an increase in repayments during the following months.
As mentioned in our last portfolio report, we were expecting at least two recoveries, which have now occurred. In Finland we recovered €1,5M and in Estonia €0,6M. Additionally, one long term default (€0,2M) was resolved in Latvia with the sale of the claim following the court’s confirmation of bankruptcy. In Germany, the first two defaults occurred, and are now being resolved using our external default lawyer and debt collection agency. The default rate is currently at 5,8% and we will be working hard over the coming months to get that even lower.
You can read an overview about how we tackle late loans in order to maximize value creation for our investors here.
We will keep you informed about the credit portfolio quality on a monthly basis.