Since December 6, 2019 IuteCredit Group has transferred a total of € 161 415.43 of borrowers’ payments to Mintos. These payments are being accordingly credited to the Mintos investors’ accounts.
Today IuteCredit Group has made an additional early payment to Mintos in the amount of € 500 000. This amount will be distributed to cover the upcoming payments due to investors with the active investments in loans issued by IuteCredit Kosovo. This early payment was made along with the ongoing outstanding repayments for the Mintos investors.
This payment is a token of trust for the upcoming payments on behalf of IuteCredit Group. Each time a borrower makes a repayment to the loan originator, Mintos receives information about the repayment. After the loan originator transfers repayment to Mintos, it is credited to investors accounts.
In the case of the early payment from IuteCredit Group, Mintos will be able to credit investors’ accounts right after receiving the information about borrower’s repayment for the specific IuteCredit issued loan.
Background on IuteCredit Group
As we have notified you earlier, the end of 2019 has brought IuteCredit Group unexpected events related to IuteCredit Group’s business operations in Kosovo. While the company will be maintaining its efforts to restore the business activities in Kosovo as its preference, IuteCredit Group management also informed us it cannot preclude the option to file international and domestic lawsuit against the decision of the Central Bank of Kosovo.
In order to ensure to Mintos investors that Kosovo events remain on a relative scale – a non-material occurrence for the IuteCredit Group, the company shared it decided to write-down the portfolio of IuteCredit Kosovo to € 4.9 million (30 September, 2019: € 9.3 million). The decision is made due to reasons of commercial prudence, since the collection of receivables remain uncertain.
According to IuteCredit Group, to write-down the Kosovo portfolio is in the best interests of all parties as it is conservative yet adequate under the given circumstances. The Kosovo event will remain on a relative scale for the IuteCredit Group, and the company can put more focus on its daily tasks, that include the profitable growth of the group. Existing country operations are moving forward according to the plan and will also reflect on the growth results in 2019, followed by the annual financial statements and reports.