We are reaching out in response to the recent developments in the Russian and Ukraine conflict. We have been following the situation in the region very carefully and today we want to give you an update on the action steps initiated:

• According to our internal policies, our executive team has formed a task group to monitor (24/7) the latest developments of the situation with the mandate to initiate an action plan to mitigate any effects on our operations. As always, the interests of our investors are the main priority, thus we are focusing on liquidity and financial stability.
• We have activated additional measurements of our Russian loan originator’s risk policy to ensure even more well-managed portfolio quality, limiting issuance in some regions and to the riskier customer groups.
• Significant liquidity (liquid funds) buffer has been accumulated in our European operations, our banks in Europe and Russia informed us of no known expected disruptions in payments, even if Russia is disconnected from SWIFT.
• A potential depreciation of RUB has been already budgeted for, yet we are actively managing our exposure.
• The safety of our Russian employees also remains a high priority as we monitor the situation very closely. We are in close communication with our people.

What does it mean for TWINO investors?

TWINO is against any military invasion. The ongoing conflict is political, but unfortunately, it is also affecting the people and businesses in Russia who are put in a difficult situation due to existing and potential sanctions. At this stage, we will not limit the financial inclusion for civilians – the Russian loan originator will continue to issue loans and these loans will be available for investments.

• The total share of Russian loans constituted 20.1% of the total investor portfolio at end of January. Our largest markets remain Latvia and Poland, respectively.
• The Russian consumer loans are being offered at 10% interest p.a. and  12% interest with the currency exposure functionality. Moreover, they come with the BuyBack Guarantee.

What does it mean for TWINO Group?

Overall, it should be stated that the lending sector is relatively immune to market fluctuations, which has also been clearly shown by the pandemic-caused crisis, which left a short-term negative impact on the sector that was followed by a swift recovery. Furthermore, we want to highlight that TWINO has well-developed change management processes, a great example of which was the aforementioned TWINO’s action plan during the pandemic, allowing it to overcome the negative effects.