Recovery of non-performing loans in Poland

A word from DoFinance, on the subject of utmost importance – Loan Recovery.

As it is known, Loan originators are tirelessly working to find the best solution as pertains to the recovery of the non-performing loans that are currently still outstanding.

More than one and a half year of litigation and considerable associated costs in Poland has proven that outright sale of the non-performing loan portfolio may lead to better financial results and more proceeds to Dofinance Investors.

Since the obligation to act in the best interests of DoFinance investors is taken very seriously and given the current context, Poland loan originators have elected the sale of non-performing loans in an auction. The said operation will be executed at a true market value of the non-performing loans.

Investors, under the assignment agreement, have authorized the loan originators to undertake all appropriate measures to recover the loans in question. The overall recovery rate Dofinance Investors remaining portfolio is expected to reach 45%-60% of their investment value in case the auction is successful.

Non-performing loan claims will be sold in their entirety – face value of the loan, the accrued interest, penalties and accompanying expenses. Afterwards, when the aforementioned operation is done, the information on these loans will be removed from the investor profile.

To be fair, it is worth mentioning that the rate of recovery amounting to 45%-60% of the investment value in the case of a non-performing loan is an indicator far above the average across the consumer loans industry. Besides, the recovery rate would be lower if the loans were to be litigated. The funds will be available immediately after the buyer takes over the portfolio, which is expected already in January 2022, rather than after some additional years of litigation that would cut out a fair percentage of the remaining face value.

So here we are now, a few inches away from the moment we have all been waiting for some time now. We are very happy that our investors stayed strong and maintained their trust in DoFinance. We will keep you updated on the result of planned auctions. Hopefully we will receive good news already by the end of 2021.

Thank you for your trust and patience.

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