DoFinance update

In this article you will read about

  • General situation in the markets where Alfa Finance group operates
  • Recovery plan progress


General situation in the markets where Alfa Finance group operates

As shown in the chart below, the number of cases of COVID-19 in Poland is not dropping as fast as one would expect. This implies that no further reliefs of restrictions are expected immediately. During the period since last blog post there were presidential elections in Poland where the previous president was re-elected. Unfortunately, that means that Poland will continue to pursue a populistic political approach. Nevertheless, we consider that no further immediate negative effect could be applied to the online lending industry. From our sources we see that the online lending market in Poland has dropped by 75% since the beginning of March. But we also do hear from the industry that few lenders are preparing to resume their lending activities.

Number of incidents of COVID-19 in Indonesia unfortunately is still rising. Indonesia, as it is written in the media, “the worst-hit country among member states of the Association of Southeast Asian Nations”, the total cases reached 81,668.

The death toll in Indonesia rose to 3,873, while recoveries increased to 40,345. The government will consider about prevention’s of COVID-19, which may include new restrictions in the nearest future.

There are several restrictions still in place and free movement across the country as well as different neighbourhoods is still limited. In the bigger cities local neighbourhoods have formed security personnel that is restricting movement of people not belonging to the said neighbourhood. This is limiting the possibilities of a field collection of debts.

Recovery plan progress

As mentioned earlier the strategy of Poland loan originator is to resume lending activities in cooperation with 3rd party investors. The negotiations are already in a stage where Loan Originator is negotiating exact terms with external investors. It is predicted that the new investors would join in until the end of August. What does it mean to existing DoFinance investors – the Loan Originator will restart positive cash inflow. This in turn means a possibility to resume Buy Back, but that is a subject of successful restart of operations.

Loan originator in Indonesia is also having similar discussions with institutional investors that are interested in investing funds in the company to resume lending activities. Loan Originator of Indonesia has resumed lending activities with its available funds as it sees a positive trend in the repayment discipline. The purpose is to start to recover losses incurred in Spring as fast as possible and also consider resuming Buy Back possibilities once the business starts moving back from its lowest point. It is expected that negotiations with one investment funds should finalize in the coming weeks.

At the moment Alfa Finance group is doing its best to push Loan Originators to collect as much loans from its debtors as possible. Currently, the Loan Originators are experimenting with different debt collection strategies that have to be employed during COVID-19 restrictions. Some of them are unique, since existing debt collection companies have also reduced their activities.

DoFinance is still working in close cooperation with the Financial and Capital Markets Commission to receive a license of an Investment Broker Company. The process is ongoing, and it should finish within the next 6 months.

Since the beginning of COVID19 crisis, DoFinance has recovered and paid out approximately 1,2m EUR to investors, that is a quite big number compared to the total size of investments in DoFinance platform.

The next update is expected as soon as there will be any news from external investors or not later than in one month from now.

We encourage our investors to ask any questions to our client service personnel. We also encourage to check the validity of information should you get it from 3rd party sources as in some cases it may be misleading or imprecise. The best way to contact us is through email: [email protected]