Mintos suspends lending company from its platform
European lending marketplace Mintos has suspended lender E-Cash from its primary and secondary markets after the firm revealed its plans to wind down.
E-Cash, which provides short-term loans in Ukraine and joined Mintos in October 2019, is still in the process of working out the details of its wind-down. The lender has €816,205 (£709,942.27) in outstanding loans listed on Mintos’ marketplace.
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Mintos said it has suspended E-Cash from its platform until its wind-down process is more clear and the current commitments towards its investors have been settled.
The platform said it made the decision when taking into consideration that E-Cash has missed its regular settlement payments towards investors for the past seven days and the upcoming wind-down process is yet to be evaluated by Mintos.
As of 21 April, the current pending amount for investors was €407,263, there was €816,205 in outstanding E-Cash loans and the current outstanding investment on Mintos reached €714,312.
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There are 11,516 investors with active investments in E-Cash loans, with the average investment per investor being €62. Mintos investors have earned €272,715 in interest to date from their investments in loans issued by E-Cash.
Mintos has changed the risk score for loans issued by E-Cash from four, a figure indicating an elevated risk in some or most of the evaluated aspects of the investment opportunity, to withdrawn- suspended.
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“We are working with the management of E-Cash to resolve the situation,” Mintos said in a blog on its website.
“We will inform investors as soon as we have more information.”
Mintos said that it would suspend a lending company due to concerns about its operations and once it has been suspended, new investments cannot occur until the suspension is lifted or lapses. The suspension is intended to protect investors’ interests.
