During September, our oldest market, Estonia, attracted the highest interest from our investors with €5,2M in loans funded, followed by Lithuania (€4,1M) and Germany (€1,8M). The total financed amount was satisfactory at €13,8M.
A total of 75 loans, with an average return of 9,1%, were paid back during September. We have tightened our policy in regard to the extension of loans and consequently, more borrowers are expected to refinance their loans in the coming months.
The default rate decreased due to a large Finnish recovery (€2,0M, with an average net return of 2,2%) and is expected to settle in the range of 5,0%-8,0% in the coming months. The long-term goal of keeping the default rate below 5,0% hasn’t changed and our team, along with all of our debt collection partners, is doing everything to establish this level as soon as possible. The opening of new markets (Finland, Germany) has unfortunately resulted in an increase in late and defaulted projects for our investors over the last few months. Lessons which we have learned from similar situations in the past in the Baltics are now being implemented in these new markets and, with time and patience, the recoveries are not far away. The letter of intent to sell the claim of one of our first defaulted projects (€2,5M) in Germany has been signed and, if the analysis done by the buyer is positive, then the recovery should happen at the latest by December. We are still expecting the largest Spanish defaulted project’s (€1,8M) claim sale to happen during November.
We have received many questions about our debt collection partners and our role in the process. We want to assure you that all the decisions including strategy and next steps are being decided by our risk team. This means that if we are handing over the cases to our external partners, then we are overseeing and guiding every step of the process in every country, with no exceptions.
| As of 19.10.2022 | |
| Total financed loans since 2014 | €645,5M |
| Total repaid loans since 2014 | €367,2M |
| Total outstanding portfolio | €278,0M |
| Total outstanding defaulted loans | €21,1M |
| Total number of outstanding defaulted loans | 56 |
| Default rate (outstanding loans) | 7,6% |
| Partially recovered loans rate (outstanding loans) | 2,9% |
| Default rate (total financed loans) | 3,3% |
| Total amount of recovered loans (including partially) | €24,4M |
| Total number of fully recovered loans | 130 |
| Average return rate of fully recovered loans | 8,8% |
| Average time from default to recovery | 11,0 months |
| Write-off rate (total financed loans) | 0,006% |
We will keep you informed about the credit portfolio quality monthly.
