During the due diligence process and in the terms sheet preceding the loan agreement the terms and covenants are explicitly mentioned and discussed with the investee.
The investees are monitored on a monthly basis and their portfolio development is proactively watched. In case of signals of issues the investee is asked to elaborate on the situation and we seek how to support the MFI in solving the issues. A possible outcome could be a restructuring to give the MFI time to recover. In work-outs, we try to seek an appropriate solution for all stakeholders engaged in a multi-stakeholder dialogue.