$Do Finance has published a status update:
The general situation in the markets where Alfa Finance group is represented
Poland loan originator has stopped new loan issuance and currently, Poland loan originator is working on loan recovery exclusively with accountants and lawyers involved. The related costs for lawyers and accountant involvement are fully covered by Alfa Finance.
In the meantime, the Indonesian loan originators are fully operational, meaning that the new loans emerge alongside the new products.
With regard to the money loans in Indonesia that were affected due to the pandemic, the up-to-date position is that the loans are being recovered with the help of external agencies and the local court system. Meanwhile, all cases in Poland are being referred to court, but because of the covid-19 restrictions, some parts of the cases have slowed down and the others should be resubmitted again.
Performance of affected portfolio part
Currently, the loan originator’s recovery plan is in progress, and since the last update, which was September 2020 the internal debt collection team and in solid partnership with debt collection agencies, the loan originator in Indonesia has managed to recover 776,681 EUR. Meanwhile, in Poland 186,793 EUR where almost all loans have been placed in court.
In percentage terms, 35% of total affected investments were recovered in Indonesia and 17% in Poland. The total portfolio in recovery for Indonesia and Poland is 5,446,000 and 4,325,000 EUR respectively. DoFinance investor share for the Indonesian part is 34% and for Poland – 17%. The remaining portfolio is funded by shareholders’ investments, with 66% share of Indonesian loan originators while 83% share in Poland. The total payout to investors since the 1st of May 2020, including interest, is 1,272,535 EUR. We are planning to update the recovery plan progress every month from now on.
Investment brokerage company license issued by FCMC
The company is working towards obtaining a license from FCMC, which will have a substantial positive impact. There is still pending documentation to be prepared, and some processes are undergoing amendments according to the FCMC requirements.