Due to an orderly wind-down of Kredit24, we have made a decision to suspend loans originated by the lending company from the Primary and Secondary Markets on Mintos. The suspension is effective immediately.
Mintos and Kredit24 management teams have been in close cooperation throughout the time of the lending company’s presence on our platform. Unfortunately, the latest global events have had a much bigger impact on Kredit24 operations, having its management team face a very challenging situation.
Kazakhstan, the market of Kredit24 operations, has experienced severe lockdown conditions due to multiple outbursts of Covid-19. The government imposed moratorium (see a more detailed layout of the situation here), movement restrictions in the country, as well as a forecasted impact on unemployment and respective ability to make repayments among the borrowers of Kredit24 have made it difficult for the lending company to continue its operations.
In light of these developments, the management team of Kredit24 has decided to make the difficult decision of interrupting their business and going into an orderly wind-down.
So far the management of Kredit24 has shown a very strong commitment to meet all obligations under the current cooperation agreement, and Kredit24 and Mintos are very close to signing a restructuring solution. All outstanding loans will be repurchased from the investors today in order to determine the full debt amount to be restructured. We will provide more details once the restructuring documents are signed by all parties involved.
Mintos risk rating for Kredit24 changes to Suspended, and will be implemented at the time of publication of this blog post. See the latest Mintos Risk rating update for details on rating allocation.
About Kredit24
The current amount of Kredit24 outstanding investments on Mintos is € 401 500. There are 4024 investors with active investments in Kredit24 loans, with the average investment per investor being € 99,78. The current amount of pending payments is € 7 903.
About Suspensions
Suspension of a particular lending company occurs when Mintos intervenes in the Market – Primary, Secondary, or both – to stop investing due to concerns about a company’s operations. Once suspended, new investments cannot occur until the suspension is lifted or lapses. When both Markets are suspended, this is intended to protect investors’ interests by preventing investments in new loans on the Primary Market, or the sale of existing loans issued by Kredit24 on the Secondary Market.
