Estonian peer-to-peer lender Monethera has ceased all work on its platform until the coronavirus crisis comes to an end.
The move suggests investors will no longer receive interest on loans but it is so far unclear if they can make withdrawals.
The platform said in a message to investors that borrowers could no longer fulfil their obligations due to a state of emergency being declared in almost all European Union countries.
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“All debts are frozen to avoid a risk of general insolvency and widespread default,” the note said.
“This is a situation when it is impossible to file for bankruptcy against debtors.
“We also had to reduce staff due to quarantine and the general economic situation.
“Our office in Riga is closed.”
The platform said it would suspend social media and support activities next week and added that it had no solution to questions about what would happen to investor money.
“It will be necessary to wait until the coronavirus crisis gets to an end,” the update said.
“After this, borrower-companies could return to process all pending transactions.”
The Estonian P2P lending market is already under pressure at the moment after police launched a criminal investigation into the unexplained closures of Envestio and Kuetzal, which has left investors unable to access their funds.