At the end of last year, DoZarplati introduced a new legal entity (MCC “Sojuz 5”) in addition to its older entity (LLC “DZP-Center”). Now, the company has changed its business plan and will wind down its older legal entity.
All investments made in LLC “DZP-Center” loans will be returned to investors on Mintos during the next few months, in accordance with repayments from end-borrowers or under the buyback obligation from LLC “DZP-Center”. Additionally, MCC “Sojuz 5” guarantees the fulfilment of LLC “DZP-Center” obligations to investors on Mintos.
“We have handed over the LLC "DZP-Center" licence for carrying microfinance activities to the Central Bank of Russia, and as a result, abandoned the status of a Micro Finance Company. This decision is the next stage of our planned business restructuring of the DoZarplati group. Previously, we planned to use LLC "DZP-Center" for issuing business loans to legal entities and individual entrepreneurs, however, changes in the market conditions and the current economic situation indicate a decline in the profitability of this business model. In this regard, we have made a decision not to enter into the business loans segment and focus our efforts on issuing microloans to private individuals, for which the legal entity MCC “Sojuz-5” is now actively used.”
According to the approved strategy for 2021-2022, LLC “DZP-Center” will continue to provide services to active clients (technical support, legal support, repayment of loans and collection of overdue debts), but will no longer be engaged in issuing new loans. At the moment, the loan portfolio of LLC “DZP-Center” exceeds €20 million.
Investors on Mintos will have the opportunity to continue to invest in DoZarplati loans with the company’s main legal entity MCC “Sojuz 5”.
