Our investors backed nearly €20,0M worth of loans in May of 2022. The best-performing market was Estonia (€7,0M), followed by Lithuania (€5,0M) and Finland (€3,6M).
As we predicted last month, repayments improved during May. Our borrowers paid back €14,6M worth of loans and we expect this positive trend to continue into June.
The default rate has now decreased to 5,2%. We recovered the final project of one Finnish borrower group (€0,8M), and are awaiting repayments from two other Finnish projects (€3,5M). Auctions have been successfully completed in both cases, and we expect the repayments, at the latest, in July. In Estonia, we recovered the last payment (€0,2M) from the Laineoru project, which was one of the longest defaults in our investors’ portfolio. We hope to resolve the defaulted project in Spain by mid-July as we are now in the final stages of selling the project to an investor. We expect a positive return to our investors. Since March, after the war started in Ukraine, the late loans rate has increased. We can assure you that we are tackling the problem and are in constant contact with all the borrowers to solve the issues and receive the late payments. If you’d like to gain some deep insight into how we manage the credit risk situation in all our jurisdictions and the process we have in place to assess and mitigate risk, watch this recent webinar on The Digitization of the Credit Process to Strengthen Decision Making (Please note that the webinar is only in English).The default rate increased to 5,9%, due to new default projects in Lithuania and Estonia. We expect that the collateral from two large Finnish loan projects’ (total of €3,5M) will be sold through auctions within a month, with repayment to follow during June-July.
We will keep you informed about the credit portfolio quality monthly.
