Mintos loan originator IDF Eurasia has taken steps to address disruption to payments due to the Ukraine crisis, and is offering 15 per cent interest rates for its euro-denominated loans over the next two to four weeks.
IDF Eurasia, an online lender which operates in Russia and Kazakstan, said it has been affected by the disruption of financial flows due to sanctions against Russia and Russian retaliation.
It said that its ability to transfer money to and from Kazakstan, both in euros and Kazakhstani tenge, was temporarily interrupted as European banks imposed additional checks on transactions coming from CIS countries.
Read more: Mintos reports rising interest rates
To avoid interruptions to payment transfers going forward, IDF Eurasia has opened additional settlement accounts with four local banks; conducted compliance sessions with the banks’ managers to ensure understanding on payments; increased the frequency of settlement payments to Mintos to twice a week; and restructured money flows so that they can be more efficiently converted into euros and transferred to Mintos quickly.
“With all the mentioned measures in place, we’ve remitted in total over €3.4m (£2.9m) to investors on Mintos in April, and significantly reduced the pending days,” IDF Eurasia said.
IDF Eurasia said its only unpaid balance on Mintos is the outstanding amount in rubles, which represents around five per cent of total investments.
“For these loans, we’re working hard on finding the most optimal and efficient transfer solution (or an alternative net settlement option in euros) to cover the pending payments to investors,” IDF Eurasia added.
The online lender said it continues to monitor the continuity of settlement transfers closely, and is working hard on clearing the remaining pending payments and preventing further disruptions.
“Additionally, to support the increased seasonal demand for its loans in Kazakhstan, IDF Eurasia proposes favourable 15 per cent interest rates for loans in euros for the next two to four weeks,” the firm said.