A new batch of recoveries from Birima has been transferred to investor accounts today. Birima, our provider in Senegal, was suspended from operating on the MYC4 platform back in 2010 and since then we have been following up on an ongoing basis to ensure that as much as possible of the defaulted portfolio is recovered.
Today’s recoveries amount to €6,100 which has been divided evenly between the 23 defaulted loans. The total amount of Birima recoveries that have been returned to investors in the last year and a half is now €28,525. Read previous blog posts on this topic here:
Recoveries on loans from Senegal (May, 2011)
New recoveries on loans from Senegal (February, 2012)
A third round of Senegal recoveries is now in investor accounts (June, 2012)
Much appreciated. Is it correctly observed that the recoveries are evenly split between the 23 loans?
One could argue that recoveries should be splitted between the loans according to the original principal.
Any thoughts on this?
I hope you are able follow this to the end – how much time it may take
Hi Claus,
Yes, it’s correct that the amount was split evenly between the loans. Usually recoveries follow the individual loans, but in this particular case we are receiving the recoveries from Birima as they honour their guarantee, not from the borrowers.
Best Regards,
Githa
Githa,
good news 🙂
Could you also add how much is still outstanding on the Birima loans overall?
Cheers,
Joerg
Hi Jörg,
Based on figures from https://www.myc4.com/Invest/Providers/View/22094 where it is stated that 211,041 Euro for business funded and 108,236 Euro received as repaymentes – principal, my best guess is around 103,000 Euro …. but Githa may be able to provide a more exact figure.
[…] old portfolio. So far, 21 % of the defaults have been recovered for investors, with the most recent round of recoveries being returned in December 2012. The case in Senegal was handed over to legal enforcement mid last […]