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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Progress can be made only when the other side, lending companies, want to do the process necessary to be able to transfer these funds.
OK, so I take it from this that Kviku is not being helpful in getting the funds transferred to us, investors?
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Go back to school @Mintos
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I have not received answers to my questions:
1. Monthly limit is 10 million RUB. Where is this money? If they don't pay, they should pay interest. Is there a lawyer here?
2. What is going on with "“C” type accounts for repayment of debt to creditors from “unfriendly” states."- CBR proposal ?
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Hello Paweł Andrzej Lechowicz
1. This is an unrealistic option forced on us by the Russian government that we must not allow to be forced on us. Even with lower-exposure credit companies, the maturity is decades.
It's best to put this option out of our mind completely.
2.Type C account is just another trap from the Russian government. I think there is a big risk that when you move funds to this account it will be forfeited to the Russian government(from this account they can't move funds to us), the funds are better to keep on a credit company for future opportunities.
Lucja (Mintos),
Mintos and the credit companies are close to the financial sector, so my question is whether you have considered this route:
Both credit company and Mintos create account on stock broker.
Credit company buy Gold ETF(or any other, but not issued in USA or EU).
Credit company request their broker to move the ETF to your broker account.
Mintos just sell ETF and tranfer funds to EUR.
Lucja (Mintos) Please give me arguments what makes it impossible to move funds using an intermediate asset such as gold or the ETF mentioned above.
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1.) Why is Mintos not interested in giving investors convidents of being inside the right boot of P2P Platforms or simply been fooled by Mintos?
2.) What is mintos doing by clearing doubts of all investors on this platform when e.g. it comes to Kviku loans?
Questions to Kviku Loans:
a.) Since Feb. 2022 i am listening to the promise that Russian creditors will be allowed to send 10 Mio. Rubel every month, why we have not even received a single Rubel from Kviku by now?
b.) Can we see the cash on the debtor account at least a print screen that the money it self is present or exist since you keep on talking about that it cannot been transferred. But proof it is at least there and frozen for other investments.
c.) When will we receive the first transaction from Kviku?
d.) When will you tell us the truth what is really going on e.g. is Kviku maybe running in bankruptcy?
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Dear Investors,
Paweł Andrzej Lechowicz and Ondrej Bobek
Thank you for your questions. Please note that we have reviewed all reasonable options for alternative payment routes based on all investors’ ideas and questions shared across the Mintos communication channels. They all led to the same key point: As the Russian lending companies are licensed businesses, all alternative payment routes that would allow transfers greater than RUB 10 m per month include aspects that require consultation and approval with the competent regulator, the Central Bank of Russia.The companies would risk their license, and that would negatively affect the recovery of investors’ funds from Russia. Also, these proposed alternatives are not allowed or available to Mintos under the regulator’s rules.
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Hello Lucja. The problem is that Mintos has not reached any agreement with Kviku. No contract or debt repayment plan, and the legal route in the current situation simply does not make sense. Already in May I wrote about the need for the Mintos team to start talks with Riga High Schools regarding some form of repayment of at least part of the debt and the risk of nationalization of the capital of citizens of countries that Russia considers hostile. It would also be good to correct or explain the recent information that Mintos representatives only in November decided to start talks with Kviku regarding the repayment of the deb
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Hi Christopher
Thank you for sharing. We understand your frustration and concerns about the Kviku. The reason we can't share any detail at the moment is to protect investor's interest. Due to the lending company's lack of cooperation, it wasn't possible to reach an agreement. We have engaged local consultants to enforce the agreements. As soon as it is possible, and it does not affect the course of the case, we will make more information available. In the meantime, we ask for your patience and to follow our monthly updates.-1 -
Dear Lucja (Mintos),
In the past few years a lot of companies show "lack of cooperation". This shows that Mintos' process of onboarding LOs (assessment of LOs) is unreliable and something should be changed - e.g. Dziesiatka Finanse, Kviku, Wowwo, IDF Eurasia not paying pending payments and Mintos haven't introduced a repayment plan,etc..
I think that Mintos should introduce bank guarantees for safety of investors. You are an unreliable partner and investors cannot be sure that one day they will receive their money even if LOs are in good financial health (e.g. IDF Eurasia).
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Mario Dianov Kasabov
Thank you for sharing your feedback. Please note that before any lending company can offer loans on Mintos, we carry out a series of due diligence reviews and checks to find out if they’re suitable, and only very few of them we connect to the platform. Even though due diligence can’t guarantee that every loan will result in a successful investment, our aim is to minimize the risk. Underperforming loans are almost always the cause of issues with a lending company, but sometimes unforeseen events – like a global pandemic or war can occur which negatively impact the lending company's performance and result in poorer loan performance. Investing in any asset class comes with risks, and so does investing in loans. To support investors in their risk assessment, we’re offering a variety of perspectives and information that can be used when making investment decisions, but the end responsibility for decisions made is always on investors. This is the same when investing on Mintos, or on other platforms that offer multiple assets, like stocks, crypto, etc. Each lending company has a different situation and for each case, we look for a solution that is in the best interest of the investor.0 -
Lucja (Mintos)
Just write 2 sentences and explain why Mintos haven't shared with investors a repayment plan for IDF Eurasia's pending payments similar to ID Finance and Creditstar.
Do you think it's normal to wait 1 year for my pending payments and not receiving adequate information from Mintos?
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Mario Dianov Kasabov
The agreement with IDF Eurasia is to transfer a minimum of 1M EUR per week.
We understand that it takes longer time to clear the pending payments than initially expected, however, investors are compensated for it with increased interest on pending payments.0 -
Hi Lucja (Mintos)
- in your Pending payments updates of 19 AUG, you consolidated the pending payments of IDF Eurasia for the various currencies (EUR, KZT, RUB) into a single entry in EUR
- the consolidated amount of pending payments at that point was € 12,193,853.00
- this rose to € 17,500,000.00 in your next update of 28 AUG and has remained the same ever since
If they are paying at least 1m EUR a week, why is the overall amount not going down?
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@Lucja & @Anna
I wonder which interests you defend? Investors or Kviku ? Loss of license or loss of EUR 40-50 million. You know very well that the central bank will not agree to larger transfers because it will destabilize the currency. You should re-examine all possible ways from the beginning.2 -
Lucja (Mintos)
Because Mintos always doesn't have information about its LOs, let me present Mintos the following info:
1. On December 22, 2022, "the sole shareholder of IDF Eurasia (OnlineKazFinance) decided to approve of the issue by the Company of the coupon bonds with tenor not more than 12 months in the amount of $20 million (https://k4txdyb.onk2.com/Runtime/Runtime/Form/MRA.Disclosure+Document+Display+Form?documentid=ca2fe28a-6998-4672-9ece-96e2d90c6611).
2. From KASE (Kazakhstan Stock Exchange) we can seе the following bonds with maturity dates relating to IDF Eurasia:
2.1. MFOKb5 /20.03.23–03.04.23/ - 3 billion KZT (around €6 million) - https://kase.kz/en/bonds/show/MFOKb5/
2.2. MFOKb6 /08.03.23–22.03.23/ - $5 million - https://kase.kz/en/bonds/show/MFOKb6/
I am not a second-hand investor and want to receive all my pending payments by the end of March. In its pending payments updates Mintos always writes "Any proceeds from the ongoing bonds sale will be used to accelerate the payments".
Lucja (Mintos) I don't want the increased pending payment interest from IDF Eurasia, I want my principal back immediately. If I don't receive my pending payments by the end of March, I want written comments by Mintos CEO Martins Sulte why IDF Eurasia is not defaulted on Mintos and you are cheating/misleading investors; written comments by IDF Eurasia CEO and shareholders, including Boris Batin and Alexander Dunaev.
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Hi mw,
On the weekly basis, we do the net settlements with each lending company. For IDF Eurasia, there are existing overdue Pending Payments, that we report as well on a weekly basis. In order to lower that amount, the weekly payment must be higher than new borrower repayments, which go also into the Pending Payments minus (-) new investments in the Notes. If from the weekly transfer, there is something remaining that lowers the total Pending Payment exposure for the lending company.0 -
Hi Mintos,
Looking at some of the repayments coming through from RUS lenders I´m a little lost as to the repayment principal being followed by Mintos:
Is it the standard waterfall?
or
Equal distribution amongst investors according amount owed
Thank you in advance for clarifying.
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Hi Angus,
Thank you for your question.
In the case of payments from Russia, it is the equal distribution amongst investors, since we expect that there might be some losses.-4 -
Hi Lucia,
i thought there are no losses from russian borrowers and you are just working on finding ways to send out money from Russia to a Euro Account which is restricted by sanctions. It seems you having already more information that all users are waiting for. Can you share information from which lending companies the losses might be expected? Could this be by any chance by the biggest cake of all (Kviku) who has not made any payments at all?
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Lucja (Mintos) It is unbelievable that you post the information on losses regarding russian credits without disclosing further information. You obviously don't have the slightest idea on how to communicate with your investors.
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Hello Lucia hello Mintos;
Why dont we hear any news or updates about Kviku Loans so far: See what information i got from Kviku itself by just simply write them why is there such a mismatch in communication? Why do we need to bring light into the dark ourselves and start questioning the lenders them self ? Is Mintos fooling the investors and taking benefits by holding the money back and tell us a different story ?
[Statement by Kviku] "Following our ongoing discussions and meetings with the Central Bank, given the large outstanding amount of foreign debt (significantly over the amount of other loan originators from Russia), we have been pushed by the CBR to repay outstanding debt with all foreign creditors via special S accounts, in order to preserve our license in Russia. As a compromise, we managed to get approval from the regulator to substitute the current liabilities from Mintos and other platforms with local RUB bonds and transfer them into special S accounts of the creditors instead of cash.
We believe that such transactions, will be more favorable for investors than cash repayments into S account, given the fact that those funds would most likely remain frozen until the imposed sanctions by the EU are lifted and the CBR reserves are unfrozen. At the same time, the issued bonds allow us to continue to monitor the situation and make an early repayment, as soon as geopolitical situation stabilizes.
All CBR approvals and bond documentation has been provided to Mintos back in November. The bond has been assigned the following ISIN: RU000A105F58."
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Dear Investors,
It’s still difficult to predict (with certainty) the extent to which the war impacted investment returns. We provide the regular updates on this matter here: https://www.mintos.com/blog/russia-ukraine-war-impact-update-swift-ban-rub-plunge-pausing-listing-new-loans-from-belarus-and-more/, and also we’ve considered three general (and non-binding) scenarios, where we’ve made assumptions about possible outcomes in this article: https://www.mintos.com/blog/mintos-insight-july-2022/
1) Optimistic scenario
Mintos recovers all or most of the current exposure in the medium to long term. A precondition to this is the lifting of some existing restrictions imposed due to sanctions and retaliation measures on sanctions by the Russian Central bank.
2) Pessimistic scenario
There are significant long-term losses and slight chances of any meaningful recovery. This arises because of the current limitations on the ability to receive payments from lending companies and the potential downturn in the Russian economy due to imposed sanctions.
3) Realistic scenario
The truth is that it’s not known how the situation will resolve. Currently, we estimate that it will most likely be somewhere in between the two scenarios above. Recoveries depend on the effects of sanctions and internal policies in Russia on the lending companies, the availability of alternative payment routes, plus the ability of the lending companies to maintain liquidity and solvency.
To estimate the potential impact on YTD returns in the realistic scenario, we’ve assumed a 50% loss (only for the sake of this example, there is still too much uncertainty to make any precise loss estimates). Taking this into consideration, the current YTD return on Mintos could decrease to -3.5%.
For the remainder of 2022, however, we have a positive outlook considering the attractive 14% average interest rate (in EUR) achieved at the end of June. So all else being equal, we expect the average net return to grow healthily over the rest of this year.
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Hello Lucja, (Minto)
in regards to your old post
https://help.mintos.com/hc/de/community/posts/4472174640273/comments/13235422318737
why are you trying to calm us down with old messages without any updates or special news when questions are going into a different direction (see current questions in chat) but somehow stay (consciously ?) unanswered. Why are you or Mintos is avoiding to certain questions to distribute the correct respond/answers?
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@Lucja it's a shame you're not telling us the truth. I hope mintos will be prosecuted for poor investor protection and lying.
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Hey Pawel Andrzej Lechowicz;
if you know any class action suit law case going on by now against Mintos let us know many might will jump in there to get some money back based on such information policy and other actions been or not been taken on time by Mintos, thinks for me look very fishy by now and get more noticeable day by day of the way customers of Mintos been informed and treatet.
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@ALL INVESTORS
isn't it time to get together and initiate a class action lawsuit? who would be with it? let´s meet on an other place / videocall etc..
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@Phillip Gernot Schneider. Definetely good idea. It is better to organise ourselves.
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Piotr Moskowicz and @all my email: schneider@pgs-solutions.de everybody who wants to join parallel talks in a videocall, please write me and I will manage a call with you guys the next days..
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.. theres no time to waste...
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Hi guys,
there are some emails in my account. Thanks for that.
Are there more interested people which want to join? I wait till sunday night, after I will manage a common video call with all interested guys. To join please write me: schneider@pgs-solutions.de
Have a great weekend
Philipp
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