Mintos defends decision to close Revo case without full recovery of funds
Mintos has explained that transfer limits, volatile exchange rates and uncertainty around recovery time, were all factored in to the decision to accept less than the full amount of the funds owed by war-affected originator Revo.
In an update on its website, the European lending marketplace said the decision was based on the analysis from the risk team, which showed “investors are financially better off with this agreement.”
Mintos explained that the maximum transfer limit of ₽10m (£93m) per month (which is currently in place by the Central Bank of the Russian Federation) meant that it could take over a decade for Revo to be able to pay the full amount via monthly instalments.
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Another reason for the decision was due to the volatility of the Russian ruble to euro exchange rate, coupled with the fact that banks charge additional fees for receiving rubles and converting them to euros.
Mintos said “there is no guarantee we could ever actually get a full recovery. Especially with the unpredictability of war, there could be further sanctions or measures by the Russian government.”
“We chose to accept less than the full amount of the funds owed by Revo,” it added. “Considering the analysis and consequences stated, our risk team has concluded that receiving less money faster is more beneficial to investors.”
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Mintos explained that receiving less money faster is a better option considering the current uncertainty.
“Receiving money faster is beneficial to investors because funds received today can be invested and generate additional revenue,” it said. “In calculating this, the time value of money is a crucial factor. The time value of money means a certain amount of money is worth more right now than it will be in the future.”
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