Loan Portfolio Overview (January 2021)

The first month of 2021 was a successful one for EstateGuru’s borrowers and investors. We financed a total of €14,0M worth of loans. The most active country was Estonia (€4,1M), with Germany and Finland close behind (collective total €5,8M).

In January, borrowers repaid 61 loans (€11,3M) with an average return of 11%, and we are forecasting a continuation of this stable repayment behavior for the rest of the year.

During January and the first days of February 8 loan recoveries occurred – the first default was solved in Finland (€0,2M) and the rest were smaller loans in Estonia (total of €0,45M). The overall default rate increased to 6%, mainly due to one default in Estonia (nearly €1,0M). We are seeing strong progress in dealing with defaults in Latvia where our debt collection partner has mitigated the collateral risk by transferring defaulted collaterals to our security agent’s name. This will help us to sell the collaterals without disputes if the borrowers do not fulfil the terms agreed in the transfer contract.

We will keep you informed about the credit portfolio quality on a monthly basis.