We want to give you the latest update on TWINO’s planned activities to continue offering high-return investments also in this period, where the global investment market is subject to volatility resulting from the war in Ukraine.

Situation description

• This week, TWINO asked the Latvian Financial and Capital Market Commission (FCMC) to provide a more detailed explanation of the sanctions imposed on Russia, taking into account the wide possibilities of interpretation in the context of sanctions and the constant changes happening.
• Following the company’s initial strategy to gradually reduce the loans listed from Russia, a decision has been made to further limitations. In the coming days, we will stop listing loans from the Russian loan originator on the primary market.
• Moreover, this means that also no new loans with the Currency Exposure functionality will be listed.
• Nonetheless, it will remain possible to buy and sell Russian loans on TWINO’s secondary market.
• We will continue to monitor the situation closely and adjust our business decisions accordingly.

Cooperation with Russian loan originator

• Until 28th of February, fund transfers with the Russian loan originator went as usual. However, starting from this week, we are noticing some disruptions with the payments taking a longer time to arrive in Latvia. We believe that the delays are caused by the additional operational burden put on our banking partners due to the new sanctions imposed and other factors such as currency fluctuations, constant changes, and the large volume of fund transfers out of Russia.
• In general, we see that the Russian lending sector has reduced the lending volumes to better assess the threat of an impending economic downturn. At the same time, the demand for loans in the country remains high.
• Borrower repayment quality remains stable, yet the industry players continue to keep a close eye on changes in the market – the risk of inflation, the country’s potential regulatory changes to grant “credit holidays” to the consumers – similarly to the solution adopted during the Covid-19 pandemic.
• We are in active communication with the Russian loan originator to proactively address any issues and continue our work to mitigate any negative effects to investors, including having a large focus on finding the best ways on ensuring payments from and to Russia.

If you have any questions, do not hesitate to contact us.