This our second update on the suspended lending companies. Please see the table and comments below for each of the affected lending companies. If you missed out on the previous update, you can read it on our blog.
Akulaku Indonesia
The situation – On 16 April 2020, Akulaku was suspended from the Primary and Secondary Markets due to late payment settlement. Since then, Akulaku has made repayments of € 2.89 million to investors on Mintos, including both principal and interest.
Comments – Mintos maintains a good working relationship with Akulaku management, which is cooperative in finding the most suitable solution for investors with active investments in Akulaku issued loans. Currently, payments have been made on time and in the agreed-upon amount.
Next steps – Akulaku is committed to making payments according to the schedule agreed upon with Mintos and working on introducing schedules for additional amounts that have become due. Additionally, Akulaku is in talks with its shareholders to inject additional capital in the company to help weather the situation in the market caused by Covid-19.
Capital Service Poland
The situation – On 6 April 2020, Capital Service was suspended from the Mintos Primary and Secondary Markets due to a failure to make timely settlement payments to investors on Mintos. Since then, Capital Service has made repayments of € 75 454 and zł 1 305 833 (approximately € 363 263) to investors on Mintos, including both principal and interest.
Comments – The possible increase of the regular payments highly depends on the situation in Poland. Capital Service has a vast network of points of sales (POS) which means that borrowers, in a normal course of business, would visit the POS themselves to make a repayment or receive any other service on their loan. Current restrictions have largely made it impossible for the borrowers to visit the POS, and hence for Capital Service to collect the borrowers’ repayments and transfer them to investors on Mintos.
Next steps – Aside from waiting on the restrictions to ease in Poland, Capital Service is exploring alternative sources of cash inflow into the company to help settle overdue payments with Mintos.
ExpressCredit Zambia
The situation – On 30 April 2020, ExpressCredit Zambia was suspended from the Mintos Primary and Secondary Markets, due to the company failing to transfer borrower repayments and the buyback price in full and on time. Since the suspension, the company has made payments in an aggregate amount of € 125 000 (a major part of the payments still to be reconciled).
Comments – ExpressCredit Zambia’s unfulfilled obligations towards Mintos investors are in large parts due to a delay in disbursements of government collections to ExpressCredit Zambia. The delayed payment amount from the government agency would be sufficient to fully cover the outstanding debt.
Next steps – We are actively working with the management team of ExpressCredit Zambia to determine the repayment schedule which will be both in the best interest of Mintos investors and achievable for ExpressCredit Zambia before the government’s debt is repaid. We are planning to share an agreed-upon repayment schedule in the following weeks.
GetBucks Botswana and Zambia
The situation – On 30 April 2020, GetBucks Botswana and Zambia were suspended from the Primary and Secondary Markets due to failing to fulfil their payment obligations in full to Mintos investors. Since then, the company has made a repayment of € 17 380 to Mintos investors.
Comments – As agreed in the restructuring deal, GetBucks will make the first payment from proceeds of regular repayments in Botswana this week. In the future, the regular repayments of GetBucks Botswana will be transferred on a monthly basis.
Next steps – The remaining amounts outstanding from Botswana and Zambia will be covered in two instalments: € 1 million due by 30 September 2020, and € 3 million due by 31 December 2020.
