Posted by A total of €2.06 million was financed through LANDE in September, spread across 58 projects, with an average loan size of around €35,500. The average interest rate was 11.76%, a clear increase from the 10.80% recorded in August.
LANDE reports a default rate of 3.56%, down from 3.82% in the previous month. However, this figure is based on the total volume of loans ever issued, amounting to €65.90 million. A more meaningful approach would be to look at the portfolio that is actually still outstanding. After deducting the €33.36 million already repaid, this amounts to €32.54 million. Measured against this figure, the default rate is 7.2%. In the previous month, it stood at 7.8%, so the trend is moving in the right direction.
One of the most important points that is mentioned in the report is that on September 29, Latvia declared a state of emergency in agriculture due to persistent rainfall. The measure applies nationwide and remains in effect until January 10, 2027.
As part of the emergency measures, banks and lenders are allowed to defer principal repayments and amend repayment schedules without penalties. Late contractual performance may also qualify as force majeure. As a result, payment deferrals across LANDE’s Latvian portfolio are likely to become significantly more common in the coming months.