The Fagura PRIME portfolio benefits from a dedicated Reserve Fund designed to cover losses caused by loan defaults:
Compensation mechanism: When a loan reaches 91 days overdue, the Reserve Fund compensates the portfolio with 100% of the remaining unpaid principal balance and takes over the debt for recovery.
Funding sources: The fund is continuously topped up from loan origination fees, recovered amounts, sales of non-performing loans, and interest earned on its holding account.
Capitalization and adjustment: The funding strategy aims to fully cover debts that are over 91 days late, plus an additional 20% safety margin (based on historical data). If overdue loans increase, the team can raise contribution rates within current investment limits (without retroactive application).
Protection limit: Compensations are made exclusively within the limit of available funds in the Reserve Fund. Fagura does not provide bank guarantees or protection from its own corporate funds beyond this reserve.
Unforeseen default spikes: If the default volume exceeds the accumulated funds, uncovered loans remain in the portfolio until the reserve fund is replenished or until the recovery/assignment process is finalized.