Metrokredit, a loan originator that joined Mintos in July 2018, temporarily has stopped issuance of new loans to borrowers. The existing investors will not be affected by this event, Metrokredit will continue serving existing loans, and investors will continue receiving repayments and interest.
According to the statement of the Central Bank of the Russian Federation issued on 6 November 2019, Metrokredit has been excluded from the State Register of the Microfinance Organizations of the Russian Federation. As a result, Metrokredit has temporary suspended issuance of new loans.
However, Metrokredit is entitled to service the loans that had been issued prior to 6 November 2019 and offer extensions according to the terms of the agreement if requested by the borrower and assessed as appropriate by Metrokredit. New Metrokredit loans will appear on Mintos marketplace, though these will be only the prolonged loans.
What does this mean for Mintos and investors
Mintos investors with existing investments in loans originated by Metrokredit will continue receiving borrower repayments as they are collected.
Starting from 7 November 2019, no new loans originated by Metrokredit (except for prolonged loans) are available for investing on the Mintos marketplace.
Metrokredit’s Mintos Rating will be downgraded for now from B- to C, as the company has a limited competitive position and will not issue new loans. The new rating will be effective on the Mintos marketplace from 12 November 2019 until further notice.
The management of Metrokredit is working on alternative solutions to continue issuing loans to their borrowers as soon as possible.
We will inform you about any upcoming plans or further changes on behalf of Metrokredit as soon as we know more.