Mintos warns Russian repayments are ‘hampered’ by sanctions
Mintos is warning that its Russian lending companies are starting to feel the impact of economic sanctions in the country, which could delay repayments to investors.
The alternative lending marketplace said it is in contact with the platform’s lending companies from Russia and all are trying to meet their obligations but are hampered by “severe external factors.”
One of its lending companies, EcoFinance, has this week reported a deterioration in its daily operations.
Leonid Dulenkov, director of Ecofinance, said that the “unprecedented stress test from all fronts” comes from the exchange rate deterioration and legislative restrictions that are hitting its portfolio quality and the company’s liquidity.
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“We face severe restrictions to the free flow of capital, which impacts on our ability to do any payments in foreign currency and to pay creditors from the Western markets,” Dulenkov said.
“We are concerned the portfolio may further deteriorate due to massive closures of foreign companies and stalling of the local business due to disruption in supply chains.
He said the lender is working with Mintos to meet its minimum capital requirement and make any settlements in the upcoming period.
Two other Russian lenders, Dozarplati and Creditter, have managed to repay money owed to Mintos investors in roubles through banks that haven’t been sanctioned.
“A few other lending companies from Russia are working to set up accounts in new banks, a usually lengthy process that is further complicated by the current political environment in Russia,” Mintos said.
It was revealed last week that Mintos is facing a 15 per cent drop in revenue from its lending companies due to the impacts of the war in Ukraine.