in August we had several large recoveries, I would like to share the recovery results of the entire portfolio and the latest practice of court decisions.
Our recovery results
Big time recovery
We completed the collection processes of three companies, one of them transferred 26.000 Eur in August prior the court decision, the other two 2.500 Eur and 1.700 Eur, respectively.
Consumer loan recoveries
In August, we recovered almost the same amount from consumer loans as in July – 65.936 Eur (2.57% of all non-performing loans).
Excellent business loans recovery
In August, we collected 39.197 Eur (6.68% of all non-performing loans) from business loans.
The longer the loan, the more we can recover?
If the debtor becomes insolvent, the court awards the lost income for the entire loan period stipulated in the contract, but no longer than until the loan is fully repaid. The longer the loan term, the more interest we can claim.
Let’s compare the recovery of two loans with different terms:
A) if the loan defaults after 12 months and has a 24 months term and the recovery takes five years, then investors will receive interest for 24 months (12 months paid before termination of the contract + 12 months of unpaid income awarded) + procedural interest for five years (5% for private individuals, 6% for legal entities);
B) if the loan becomes insolvent after 12 months and its term is 84 months and the collection takes five years, then the investors will receive interest for 72 months. (12 months paid before the termination of the contract + 60 months of recovery) + procedural interest for five years.