After evaluating all the possible options and working closely with the Russian loan originator, we have come to the most optimal and sustainable approach to our investors in the current geopolitical situation. An agreement has been reached that the repayments of the Russian loans will be paid no later than after six extensions and up to 61 delay days. These changes will come into effect during the first part of the next week.
How will the repayments work for the Russian loans?
- Russian loans will be bought back by compensating both the principal value and any accrued interest as soon as the loans reach six extensions and 61 delay days.
- Before buyback these loans will be extended to the maximum possible due date which is the aforementioned 6 extensions. If on this due date the Russian loan originator is still not able to transfer the funds, then the delay days are started to be counted.
- Interest repayments will continue to be accrued daily and paid out as per usual on a monthly basis.
- We remind you that the Russian principal repayments remain to be affected due to sanctions against Russia, including its isolation from the global payment networks. Read more on this in our previous post.
- This is a temporary solution until the payments from Russia normalize.
Let’s take a look at an example with a Russian loan that is extended already 3 times and has a due date of 21.03.2022:
- As the aforementioned changes go into effect – the loan’s due date is extended 3 times by 30 days to 21.06.2022. This is the maximum amount of extensions possible as there already were 3 extensions.
- You receive the next interest payment on 21.03.2022 and continue to do so on a monthly basis until the principal repayment is made.
- The loan’s due date is reached on 21.06.2022 and if there still are issues with transferring the funds by the Russian loan originator to Latvia, then the delay days are started to be counted.
- On 61st delay day, the Russian loan is bought back and investors receive both the invested principal amount and accrued interest.
Important past events
- On the 24th of February 2022, Russia started an act of war by taking military action against Ukraine.
- On the 26th of February 2022, the TWINO team took the first steps to protect the investor interests by starting a gradual reduction of the Russian loans listed until no new loans were listed as of 8th of March 2022.
- On 9th of March 2022, TWINO was forced to suspend the principal repayments of the Russian loans. The interest repayments continued to be covered on a monthly basis.
- TWINO’s secondary market for Russian loans remained and still remains open for the whole time.
- The Russian loan portfolio accounts for 19% of all loans on the TWINO platform. The other 81% of the investor portfolio is not affected in any way.
We trust that this is just the first positive step to ensure successful repayments of our investors’ existing investments in Russia. Our goal is to continue to search for additional solutions so that the invested funds would be repaid as soon as possible. You will be the first ones to hear more whenever we have more information to share.
If you have any questions, do not hesitate to contact us.