Latvian peer-to-peer lender Grupeer has said it will take one to two years to stabilise the business due to the pandemic and revealed it has been getting threats of physical violence from investors.
The firm paused its operations about a month ago, suspending all interest payments due to the state of emergency declared across European Union member states and limits on being able to recover debts.
“The global economic crisis caused by the Covid-19 pandemic has hit the P2P investment industry especially hard,” Grupeer said in a blog post on its website. “The financial hardships of loan originators together with governmental measures have created a delay in paying back loans and limited creditor rights to recover debts.”
Mandated payment freezes for borrowers and other measures to help debtors have made life more challenging for loan originators, Grupeer said.
Read more: Grupeer investors facing withdrawal delays
“Due to the previously mentioned reasons, Grupeer investors have unavoidably been exposed to late loan repayments, nevertheless that they still can expect to profit from their investments,” the firm said. “However Grupeer urges its investors not to lose trust in the platform’s continued operations and the safety of their investments.”
Grupeer said that is has developed a plan for stabilising the situation created by the crisis within one to two years and urged investors not to panic, as it only makes the situation worse.
The platform revealed that it has received “credible threats from investors and bloggers”, including insults and threats of physical violence, which it has notified the police about.
“Nevertheless, Grupeer is working on solutions and negotiating contracts with lenders where responsibility to pay back loans has already arisen, or will in the near future,” it said. “Grupeer would like to begin conversations with their investors to ensure maximum investment protection and solutions that promote the platform’s investor interests.”
Grupeer said that investors should contact them immediately with any questions, claims or other concerns.