Mintos will work with a third party to facilitate ruble payments
Mintos is setting up a new payment channel with a third-party service provider to facilitate ruble transactions for its loan companies in Russia.
The European Loan Market said transactions will still be limited to 10 million rubles, but will offer a solution both for receiving payments in rubles and for exchanging rubles for euros.
Mintos said it polled its investors about what cost they would be willing to bear if it developed alternative routes for ruble repayments from Russia, given sanctions imposed on the country amid the Ukraine crisis.
Additional costs would be associated with setting up new transaction channels, such as fees for third-party service providers, opening new bank accounts and foreign exchange fees, Mintos said, adding that the company will not benefit. in any way of these costs.
“We found that 80% of investors want to receive their payouts sooner, with various cost levels considered acceptable, ranging from 5% to 20%,” Mintos said in a blog post on its website. “We have started to put in place processes for alternative payment paths for a few lending companies.”
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Lending Market added that setting up an alternative payment route can take time as it must comply with all sanctions-based restrictions, while lending companies licensed in Russia must adhere to certain rules.
Mintos also said its Russian loan companies currently have enough assets to settle their debts to investors.
In a separate blog post, Mintos announced that more regulated notes are now live on its marketplace, from lending companies Zenka, Eleving North Macedonia, Eleving Albania and Eleving Kenya.
Mintos launched its long-awaited regulated notes last month, which offer investors greater protection and transparency.
It had been working on transitioning its investment product from loans to loan-backed securities since obtaining its investment business and electronic money institution license in August 2021.
It had planned to launch the Notes in the fourth quarter of 2021, but this was delayed due to the limitations of local tax and institutional systems in some EU countries which “were not fully adapted to new fintech products”.