At Bondora, we are always improving and making investing easier and better for you. So, we are happy to inform you that in April 2022, we have finalized a sale of old, defaulted loans in our Estonian portfolio. This has a significantly positive impact on our portfolio and our investors. Read more on what it means for you as an investor:
Why we sell old, defaulted loans
Simply put, we have sold off old, defaulted loans from our Estonian portfolio to decrease uncertainty and keep our portfolio quality in top shape. The loans that we sold defaulted before 1 January 2019. We considered the cost of further debt recovery efforts and concluded that selling the loans to the local Debt Collection Authority (DCA) would be more cost-effective and better for our investors.
Benefits and how this affects investors
Due to this sell-off, investors who had portions of these loans in their investment (Portfolio Manager, Portfolio Pro, and API) would have received lump sums on their accounts from this sale. Subsequently, those loans are now also classified as ‘written-off.’
You can reinvest these lump sums with your chosen Bondora investment method, transfer them to your Go & Grow account to earn up to 6.75% returns p.a.*, or withdraw any chosen amount to your bank account.
By selling and writing off old, defaulted loans, we keep the investment portfolio healthy, recover debt that otherwise would have been lost, and create room for better, more responsible lenders to form part of Bondora. We will continue to do so in the future as this increases the quality of the portfolio, which, in turn, creates even better investment opportunities for the future.
Click here to go to your Bondora account.
