Update: We’re limiting exposure to loans from Russia and Ukraine

Update on 25 February 2022: RUB currency exchange and withdrawal status

We will be monitoring RUB currency dynamics on a daily basis, closing positions at the end of the working day to prevent the risk of negative exposure. Based on the assessment of the RUB standings, we will be opening currency exchange possibilities in the mornings. The exchange will be closed over the weekend.

On 24 February 2022, the Russia-Ukraine crisis turned into a Russian invasion of Ukraine. Ukraine has imposed martial law in the country, while this new development resonates across international financial markets. At the moment, we are observing a further growing risk of sanctions that might impact settlement transfers from these markets, and a currency risk that is already materializing, without predictable outcomes in the upcoming period.

As announced in the update shared on 23 February 2022, we are taking the next steps on the Mintos platform to protect investors from market and currency risks materializing in light of this unfortunate event.

Limited exposure to all loans from Russia and Ukraine on Mintos

While primarily we introduced the precautionary measure to limit investors’ access to loans from the two countries through the Mintos Conservative strategy, we are now expanding full limitation for Russia and Ukraine-originated loans on the Mintos Primary Market.

This limitation includes loans from the following lending companies: ​​Creditter (LLC MKK “Credditer”), DoZarplati (LLC MFC “Sojuz-5”), EcoFinance (EcoFinance), Kviku (LLMC AirLoans), Lime (Lime Zaim), Mikro Kapital (JSC MFC Mikro Kapital), Mokka (MFC Revo Technology LLC), and SOSCREDIT (LLC “SOS CREDIT”).

To protect our investors from the heightened market and currency risk, we are:

  • Excluding all loans from Russia and Ukraine from the Mintos Primary Market
  • Removing all companies that issue loans in Russia and Ukraine from the Mintos strategies
  • Pausing placement of new loans from Russia and Ukraine on the Mintos platform until the need to reassess the decision emerges
  • Pausing currency exchange to and from RUB, for all currencies (approach changed, see update from 25 February 2022)

Please note that:

  • Mintos Secondary Market will remain open for investors’ activity with loans from Russia and Ukraine
  • Once loans from these companies are removed from the Mintos strategies as a measure of protection for investors, investments in loans by these companies will not be available for the standard cashout. With a temporary removal of Russian and Ukrainian companies from the Mintos strategies, existing investments in these loans will be shown as “unavailable for cashout”. Still, liquidity is possible by selling these loans on the Mintos Secondary Market until further notice
  • Currency exchange to and from RUB will be temporarily unavailable, and applicable exchange fees may be influenced by market dynamics relating to exchange rates for RUB.

The limitation will be activated as of today, 24 February 2022 until further notice. In the meantime, we will closely monitor the situation and adjust our business decisions accordingly.

Please, note that the ability of borrowers to repay loans on schedule and money transfers are closely tied to the stability of banks, and currency fluctuation is impacted by dynamics in the financial markets, influenced by the state of war. 

We want you to know that Mintos people stand with all colleagues, investors, and business partners who are impacted by the emerging war in Ukraine.

For comments and questions, please join the conversation in the Mintos Community. We will keep you informed about all further decisions on this topic.

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