FAQ about Russian and Ukrainian lending companies on Mintos
Dear Investors,
For the past few months, we have been closely following tensions caused by the Russia-Ukraine crisis, as we work with lending companies in both countries. We’re now reacting to the most recent developments in this case.
Please see our latest Blog Post here: https://www.mintos.com/blog/mintos-takes-precautionary-measures-on-the-platform-in-the-case-of-the-russia-ukraine-crisis
Currently, we don’t experience any interruptions in repayment flow from borrowers of Russian and Ukrainian lending companies on Mintos. We also reached out to the lending companies for their comments, and according to their feedback, the current situation does not affect borrowers’ repayment discipline.
At the moment, we can’t predict how further escalation of the crisis and sanctions might affect the lending companies in these markets. We are monitoring the situation, and as a precautionary measure, we’re reviewing the impact of the market risks on the Mintos Risk Score for loans from the lending companies from Russia and Ukraine.
Based on this, we decided to remove loans from Russian and Ukrainian lending companies from the Mintos Conservative strategy. This automated investment tool selects loans for investments in the score range from 7 to 10. In case further developments require a decrease of the Mintos Risk Score for loans from Russian and Ukrainian lending companies, these loans will not be fit for the Mintos Conservative strategy anymore. We’re introducing this precautionary measure to prevent that from happening.
If you have any questions or feedback, please let us know!
We kindly invite you to our special AMA session to discuss topics related to the impact of the war in Ukraine and sanctions for Russia on Mintos, the state of relations with lending companies from Russia and Ukraine, and the effects on investors on Mintos.
AMA will be hosted by Martins Valters, Mintos Co-founder, COO/CFO on Monday, 7 March 2022 at 16:00 CET
Please check more information here:
https://help.mintos.com/hc/en-us/community/posts/4603758562705-Live-Mintos-AMA-dedicated-to-the-current-state-of-the-market
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Hello David,
Here is some hopium-speculation for us to get our money back.
We are moving towards CBDC that makes the crossborder payments convenient and the old SWIFT system will also change (they will get rid off nostro/vostro accounts and use XRP, XLM etc ISO 20022 compliant crypto currencies).
This will make the payments fast and easy, and I think it should be functional within months if I have understood correctly from the website of SWIFT + other digging.
Therefore, the money should start flowing back to Europe (the sanctions will likely loosen soon as well since the world will start focusing on the next "war" between Taiwan and China). We might even prevent the energy dystopia if they will get some sort of deal with Russia. It is the best case scenario here. I believe there is a lot of political pressure in Europe to get some sort of solution between the issues between Europe and Russia. Therefore, I am hopeful there will be a solution. However, I agree that the LOs should be able to re-use this capital by giving out loans and pay us some sort of compensation.
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OK, thank you for some hope :)
I just disagree that the sanctions will be lifted soon, as the war will take months or even years. But I'm not an expert on international politics. Please just keep us all updated on regular basis.
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Dear Investors, please see our latest update here: https://www.mintos.com/blog/russia-ukraine-war-impact-update-swift-ban-rub-plunge-pausing-listing-new-loans-from-belarus-and-more/
The following points are mentioned there:
An account has been opened for payments in RUB
Agreement with SOS Credit to cover monthly payments0 -
what about our money in € !!!!?????????????????????????????????????
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Philipp Gernot Schneider In the post, we explain that the account allows payment in RUB, and then exchange to EUR before investors receive them. Please check out our update from today: https://www.mintos.com/blog/russia-ukraine-war-impact-update-swift-ban-rub-plunge-pausing-listing-new-loans-from-belarus-and-more/
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does this mean that my money (invested in € in russia not in RUB) will come back in RUB and then be changed back into €?
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All investments in russia, whether they've been done in RUB or EUR, are in RUB in Russia. So in order to receive EUR, the RUB must be received first and then be exchanged to EUR.
But my questions are.
1. There's mention about RUB to EUR exchange rate, which is not what central bank says, which is understandable. But what is this impacting to? Who takes the impact of the exchange rate? In EUR based investments, isn't the LO carrying the exchange rate risk? --> Is this relevent to investors?
2. What about RUB based investments, can those be received now? And can RUB be exchanged to EUR in the portal?
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Lucja (Mintos)
can you explain how you split the 143T€ to the investors? in the last update you said, that the first 143T€ came back and was split to waiting investors. you wrote: "This payment is already being distributed to the affected investors today"
i didnt get anything back from revo.
can you explain that please?
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Dear Onni,
1. Mentioning that the actual exchange rate is not what the Russian Central bank rate states is first meant that any RUB repayments for RUB denominated loans will be automatically converted to EUR at the exchange rate offered to us (market rate) and investors will receive this in EUR equivalent. If the investment was done in EUR (though the loan is in RUB) the exchange rate risk is indeed on LCs. Whether the LC is able to absorb that risk depends on the exchange rates and if they hedge the risk. The current exchange rate level implies that they should take this on them.
2. Only RUBs can be received from Russian LCs. The exchange will be done automatically, as our payment service provider can distribute to us only amounts exchanged in EUR.
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Annija
The transaction limit in RUB is 10 million.
Currently, the amount of loans in recovery -Kviku is € 29,936,650.
Another payment method is definitely needed.
Which investors have priority in receiving EUR? Oldest loans paid off?1 -
Dear Philipp Gernot Schneider,
Loans are distributed with the waterfall principle https://www.mintos.com/blog/wp-content/uploads/2022/04/Payments-waterfall.pdf . Therefore it is possible that you do not have loans old enough, or the amount of funds sent did not cover all loans for the oldest day.
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Now that the money flow is limited, I assume it means that late buyback loans won't be paid in any near future? As "normally" matured loan payback is continously taking priority?
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Dear Onni, you are right - as we explained, in the repayment order, normally matured loans will take priority over the buyback obligation. But once there is enough cash flow, the buyback obligation will be covered as well.
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Annija, you said, an RUB account is opened.
Why loan companies still does not transfer money?
Don't you think it works too slow? What with alternatives routes? As investors, we expect regular update.1 -
@...
same question here: what is the status quo with ALTERNATIVE ROUTES? please give an update hereto. thanks
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Dear Investors,
Thank you for your comments.
We would like to kindly remind you of updates regarding the subject that we regularly share on this dedicated page: https://www.mintos.com/blog/russia-ukraine-war-impact-update-swift-ban-rub-plunge-pausing-listing-new-loans-from-belarus-and-more/
Please note that according to the last update, the payment of 10 million RUB has already been received from one lending company, Revo. And for the remaining lending companies, we’re finalizing additional paperwork, so they can pay to our FX account. In the short term, the 10 million RUB payments will be used to settle the funds in recovery from Russia.
We encourage you to familiarize yourself with this document which, we hope, will answer your doubts: https://www.mintos.com/blog/mintos-investor-qa-funds-in-recovery/.
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Lucja (Mintos)
do you read what we ask you?
here again, 4 days ago:
what is the status quo with ALTERNATIVE ROUTES? please give an update hereto. thanks
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Lucja, are you kidding us? You only answer some of the questions.
You are talking about systematic information from Mintos? Take a look at the dates.
Investors often ask for update.
Tell us what you did for several months besides opened RUB account.2 -
Dear Investors,
We definitely do not skip your questions. As it can be seen, we are actively engaged in the conversation in this space, and we do always react when you ask for our comments. We do our best to answer you with maximum transparency, considering the applicable limitations.
When it comes to our efforts for finding alternative routes for funds locked with lending companies from Russia, as we have already stated multiple times, there is a limited amount of information we can currently share with you, but it doesn't mean that we do nothing. Stay assured that we have investigated many options, also proposed by you, our Investors, including those the most creative and out-of-the-box. The concept which could work is currently being reviewed by the Russian regulator. Keep in mind that getting regulatory approvals usually takes time.
As promised, we will inform you about any significant development when it can be already publicly shared. Meanwhile, please bear with us.
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Dear Lucia,
"We are trying but we need time" you could write after 1 month of waiting.
It's been over half a year.
Other companies pay.
In this thread, you can copy your comment and reply to any question.
When you start to be embarrassed? 9 months, a year, never?2 -
Include Łucja. Can you tell us when we can expect the first payments from other Russian companies like Kviku or Dozarplati. Like most investors, I haven't received a cent for the last six months. Another problem is the law on the confiscation of foreigners' property, which will return to the State Duma at the turn of October and November, and this time will be passed. We can lose our money just like Ukraine, its property in Russia.
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Dear Christopher,
"We are trying but we need more time"
"We encourage you to familiarize yourself with this document which, we hope, will answer your doubts: https://www.mintos.com/blog/mintos-investor-qa-funds-in-recovery/ ".
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Thanks for the ILYA SHPUNTOU link, but I got acquainted with this info as soon as it appeared and every entry that concerns late payments and recovery funds. Unfortunately, this is just an internal Mintos document and has nothing to do with what we receive. After Mintos' Notes' 'introduction, virtually all LOs are delayed in transferring funds. Companies from my portfolio that had no delays and never exceeded the grace period of more than 5 days, suddenly everything is delayed, and the money in the grace period is even more than 150 days. Yesterday, I noticed that there were 8 x 30 days extensions on several loans and the Notes interest tax charged is rounded up to as much as 30%. I do not know how it is in other EU countries, but I had to pay income tax on money that is recoverable and I have not had access to it for 3 years.
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Annija, Take a look at this article, please.
https://www.morganlewis.com/pubs/2022/03/update-russia-adopts-decree-on-repayment-in-russian-rubles-of-debt-to-foreign-creditorsIs it possible to open a bank account in a country that is not on the "unfriendly country list"?
Then the limits do not apply. I understand well?0 -
Of course it is technically possible to transfer funds throught some „proxy".
But what we are dealing with here all the time and what this whole discussion is about is how mintos management works.
This procedure cannot be done without a „creative solution".
as Martins Sulte writes
„With respect to creative solutions and "bypassing" relevant regulations - that is definitely not how we work. The regulatory requirements and the stance of the regulator are clear, and we follow those."
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Today, other important crowdlending platform has made another payment of loans withheld from Ukraine and Russia due to the war.
However, MINTOS continues without repaying the loans affected by the war in Ukraine and Russia.
One platform has sought solutions for its investors and another has forgotten them.
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I invest in Mintos precisely because of the flexibility that highly regulated financial service providers do not have. Mintos does not seem to have this anymore and I am therefore very disappointed and willing to do anything to get my money back from Russia. I do not care if there is Borders are tested, someone is tricked or someone drives across the border with two suitcases full of money.. I want my money that I have earned legally and rightly so and I'm not interested in how Mintos does it (it has to be legal, of course). to say one thing with clarity: the competition from Mintos does not sleep and has done it better. while Mintos is trying to put itself on the level of a bank in terms of regulation, it is destroying its livelihood. Be careful and now finally take care of a creative solution for our Russian funds .Thanks
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@... Lucja (Mintos)
dont you think its time for an update ? ALTERNATIVE ROUTES OF MONEY TRANSFER??????
are you kidding us?
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Dear PHILIPP GERNOT SCHNEIDER,
"We are trying but we need more time"
"We encourage you to familiarize yourself with this document which, we hope, will answer your doubts: https://www.mintos.com/blog/mintos-investor-qa-funds-in-recovery/ ".
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Ilya Shpuntou
hahahaha - something to laugh in the morning :-)))
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