European lender EstateGuru notes that their investors backed nearly €20.0 million 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 EstateGuru predicted last month, repayments “improved during May.” Their borrowers “paid back €14.6M worth of loans and [they] expect this positive trend to continue into June.”
The default rate has now “decreased to 5,2%.”
EstateGuru 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 [they] expect the repayments, at the latest, in July.”
In Estonia, they “recovered the last payment (€0,2M) from the Laineoru project, which was one of the longest defaults in [their] investors’ portfolio.”
The company hopes “to resolve the defaulted project in Spain by mid-July as [they] are now in the final stages of selling the project to an investor.”
As noted by EstateGuru:
“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.”
They added that if you’d like to gain some deep insight into how they manage the credit risk situation in all their jurisdictions and the process they have in place to assess and mitigate risk, watch this recent webinar on The Digitization of the Credit Process to Strengthen Decision Making (more details here).
As stated in the report (as of June 13, 2022):
- Total financed loans since 2014 – 586.0 Million Euros
- Total Repaid loans since 2014 – 331.1 Million Euros
- Total outstanding portfolio – 254.9 Million Euros
- Total outstanding defaulted loans – 13.2 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 48
- Default Rate (Outstanding loans) – 5.2%
- Partially recovered loans rate (outstanding loans) – 0.7%
- Default Rate (total Financed loans) – 2.3%
- Total amount of Recovered loans – 20.0 Million Euros
- Total number of Recovered loans – 110
- Average return rate of recovered loans – 9.2%
- Average time from default to recovery – 10.5 months
- Write-off rate (total financed loans) – 0.007%