IuteCredit resumes listing new loans on Mintos

IuteCredit starts a gradual return to the Primary Market with new opportunities for investment in three markets – North Macedonia, Albania, and Moldova. The company temporarily withdrew from the Primary Market in March this year, as a consequence of sharp decrease in borrowers’ demand for new loans,  and uncertainty regarding the impact of COVID-19 on effective loan repayments from the customers, and the company’s profitability.   

During the withdrawal that ended as of today, 18 June, IuteCredit Europe had repaid its Mintos investors € 10.9 million in principal and interest, while keeping approximately 10% of its balance sheet in cash reserves.  

Comments by IuteCredit’s CEO, Tarmo Sild

“Dear Mintos investors, 

For a starter, I would like to refer to Tomas Pueyuo’s article on the hammer and dance with the virus.

From IuteCredit’s standpoint, our markets in Balkan Peninsula have entered into the long “dance” phase where the customers, the regulators, and we ourselves continue to operate in a very dynamic and sometimes out-of-tune mode, while the novel coronavirus is not under full control. Based on the first three months experience, the medical impact has not been as bad as we feared, while the economic impact so far has been as challenging as we expected. Since March, we can also observe the gradual change of tone in the official statements about expected contraction rates of our national GDP’s. As of now,  -10% GDP drop in Balkan Peninsula countries for 2020 is no longer an impossible scenario. On the other hand, we have observed gradual improvement of our customers’ repayment discipline (week-on-week) after the initial lockdown shock. There are also tens of thousands of customers who continued to repay their loan installments punctually during Q2 2020. We are humble and thankful. From a sustainable loan origination viewpoint, the business model is still alive and kicking.     

Having considered all that, we have decided that it is time to get back to the accelerator pedal and resume new loan origination in meaningful volumes. In contrast to pre-virus times, we shall use both the accelerator and the brake pedal with extra care, as there are more variables on the road ahead. In our expectations, the road remains twisty and tricky for at least another year while the “dance” continues. Also, the appetite for loans and appetite for risk/reward has changed for all stakeholders, including loan customers and Mintos investors. Sensitivity towards timely cash flow remains high. We may see that change in the types of loans and APR’s of the loans that will be originated by IuteCredit, as well as in the depth and pricing of the Primary Market. I hope that the returns from sustainable lending, as proposed by IuteCredit, will meet the appetite of Mintos investors.”  

Tarmo Sild, CEO of IuteCredit Europe

About IuteCredit

IuteCredit, established in 2008, is a personal finance company. The Group is specialized in consumer credits via its 100% subsidiaries using equity and loan capital. IuteCredit serves customers currently in Moldova, Albania, North Macedonia, and Bulgaria as well as Bosnia and Herzegovina. IuteCredit’s loan products are unsecured consumer loans with maturities between 1 month and 36 months and car-secured loans with maturities up to 60 months. The mission of IuteCredit is to create an extraordinary experience in personal finance by exceeding customers’ expectations.


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