Any significant changes or a deterioration in the political or economic environment in regions where Bondora Group operates or will operate in future could lead to political and economic instability, which may have an adverse effect on investor and consumer confidence and affect consumers’ ability to repay loan interest and principal. Should their ability to repay loans and/or accrued interest be affected, it could impact Bondora Group’s ability to sustain or expand its operations in the relevant jurisdictions and adversely and materially affect Bondora Group’s cash flow, liquidity and working capital position. If such a situation were to occur, Bondora Group would likely need to raise additional capital; however, there is a risk that it would be unsuccessful, or that it would be unable to do so on a timely basis or on terms that are acceptable. If significant political or economic deterioration was ongoing, Bondora Group could face a liquidity shortage, which may have a material adverse effect on its business, financial condition, operational results or prospects, or cash flow.
Estonia, Finland and Spain are part of the European Union which is considered politically relatively stable and their political risk is generally regarded as low.