On behalf of IDF Eurasia Group and OnlineKazFinance (“OKF”), we’d like to share the following update on pending payments, which investors on Mintos have been observing over the past few weeks in Kazakhstan.
A comment from IDF Eurasia in Kazakhstan
As many businesses around the world, IDF Eurasia too has been affected by the disruption of financial flows that resulted from the sanctions against Russia and Russian retaliation. Our ability to transfer money to and from Kazakhstan (both in EUR and KZT) was temporarily interrupted, as European banks imposed additional checks on all transactions coming from CIS countries.
To make sure regular settlement payments to Mintos are transferred in a timely manner, we’ve taken a number of steps to avoid interruptions going forward:
- We opened additional settlement accounts with 4 leading local banks in addition to our existing settlement network.
- We conducted detailed compliance sessions with the banks’ managers to make sure there is full understanding on the envisaged payments from legal & compliance standpoint.
- We increased the frequency of settlement payments to Mintos to twice per week.
- We restructured the money flows domestically so that the settlement amounts can be more efficiently converted to EUR and transferred to Mintos without further delays.
With all the mentioned measures in place, we’ve remitted in total over €3.4m to investors on Mintos in April, and significantly reduced the pending days.
FintechFinance LLC (our Kazakhstan entity engaged in short-term lending), has covered the majority of its pending settlements. EUR transfers were fully restored in mid-April, and KZT transfers were restored this week. The only unpaid balance on Mintos is the outstanding amount in RUB, which represents c. 5% of total investments. For these loans, we’re working hard on finding the most optimal and efficient transfer solution (or an alternative net settlement option in EUR) to cover the pending payments to investors.
OnlineKazFinance LLC (our Kazakhstan entity engaged in SME lending), has decreased the number of pending days, and aims to cover the rest of the pending amounts as soon as possible.
We continue to closely monitor the continuity of settlement transfers and the efficiency of payment solutions we’ve implemented.
We greatly appreciate investors’ support, patience and understanding on this matter, and we want to reassure you that we’re working hard on clearing the remaining pending payments and preventing further disruptions.
Additionally, to support the increased seasonal demand for its loans in Kazakhstan IDF Eurasia proposes favorable 15% interest rates for loans in EUR for the next 2-4 weeks.
If you have any questions or comments, please write us at [email protected].