On 7 March, we organized a special AMA session to discuss topics related to the war in Ukraine and sanctions for Russia, the state of relations with lending companies from Russia and Ukraine, and the impact on Mintos.
The AMA was hosted by Martins Valters, Mintos Co-founder, COO/CFO.
Please note there will be a dedicated AMA session on the funds in recovery later in April. This special AMA was focused entirely on the war situation and its impact on Mintos and investors.
Main takeaways of the AMA session
- We are sharing regular updates on the Russia-Ukraine war impact on Mintos.
- Currently, on Mintos, there is one active lending company from Ukraine – SOS Credit (with Score withdrawn for its loans unavailable for investing)
- Two companies from Ukraine on Mintos have defaulted prior to the war – Finko UA and AlexCredit.
- Many worldwide stock indexes are removing Russian stocks from their holdings.
- New sanctions are being imposed regularly.
- Credit holidays have been implemented for borrowers of loans issued before 1 March.
- Transactions with Russia are disabled by many banks due to sanctions; Russia allows transfers exclusively in RUB, but banks are not willing to hold RUB anymore
- Mintos fully stopped listing new loans issued in Russia on 24 February; the first limitation to exposure was introduced on 23 February, for the Conservative strategy
- We have left the Secondary Market open for the existing Russian loans.
- Due to inherently higher sanctions risk, Mintos never worked with Russian lending companies that issue loans to businesses dealing extensively with state-owned entities.
- Most borrower repayments in Russia are for now current, but transactions are not going through.
- Roughly 1/7 of the exposure to Russian loans on Mintos was in RUB.
- The largest part, 6/7 of the exposure, is in EUR, and it’s mostly hedged against risks.
- There is a possibility that some of the hedges may not be executed due to the sanctions.
- Pending payments from Russian lending companies will increase as new investments are disabled.
- The lending companies from Russia are willing to make the repayments and settle their liabilities.
- We are exploring possibilities to make the settlements while being in compliance with sanctions.
- Kazakhstan banks are now explored as an option for holding KZT funds outside of Russia, where they were primarily held.
- During this time, Mintos is facing a 15% drop in revenue from lending companies.
- We are confident about weathering the storm with Mintos’ available cash balance.
Answers to investors' questions
Apart from explaining the war situation and its impact on Mintos, we also answered 12 questions from investors that were shared before the AMA session.
Play the video below to hear the answers to the questions.
Join the discussion
We’ve created a dedicated space on the Mintos Community for your questions and feedback about the AMA session. Please feel free to leave a comment if there’s anything you want to express on the topic.
