“Three months were tough for us, due to the not very stable situation in the Russian market and the absolute unpredictable behavior of customers and the [Russian] government. We face a lot of negative signs in risk and forecast an upcoming crisis in the consumer sector. We expect that a major hit will appear at the end of the summer period or in mid-autumn. We already managed to adopt a risk and marketing strategy for current market indicators and risk performance.

• Our exposure to Ukraine is less than 0.5% of the total outstanding portfolio, and loans from Russia represent under 15% of the total portfolio.
• So far, Revo has been the only Mintos partner able to obtain a special permission from the Central Bank of the Russian Federation to repay a portion of its outstanding obligations to investors on Mintos.
• President Biden signed an executive order to ban the import of Russian oil, liquefied natural gas (LNG), and coal to the United States and also banned new U.S. investment into Russia’s energy sector.
• With a standard investing account with most brokerages, investors can buy access to currency ETFs such as UUP, the Invesco DB US Dollar Index Bullish Fund, or EUO, the ProShares UltraShort Euro.

While the company’s customer base is limited, SOS Credit continues to work with its existing clients. OOO Revo Technologies MFC obtained special permission from the Central Bank of the Russian Federation to repay its obligations to Mintos how to invest in the ruble investors in payments larger than 10 million RUB monthly. In light of this permission, Revo has already transferred the first tranche of its repayment in the amount of €2.6m, and Mintos has received these funds on its accounts.

Markets

Morgan research continues to forecast a synchronized monetary policy tightening cycle due to healthy demand and rapidly tightening supply point that to continued inflationary pressures. Russia accounts for well over 10% of global oil and natural gas production. While risks remain skewed to the upside, our baseline view is that the price of Brent crude will remain close to $110/bbl through midyear and that European natural gas prices will hover at about €120/MHw. Curtailing Russian energy supplies further could produce a sharp contraction in its crude oil exports to Europe and the U.S. of as much as 4.3 million barrels per day (mbd). It is hard to know the true extent of the decline in Russian oil exports with our estimates in a wide range of 1 to 3 mbd.

If market conditions change significantly, or the correspondent bank’s decision impacts the decision of the Mintos servicer bank for KZT, the currency exchange will have to be disabled. This results in occasional transactions of EUR repayments to Mintos, which are then credited to investors’ accounts. The transaction amounts vary in size and frequency, as they depend on the demand within the banks’ client network. We have opened an account where RUB payments can be received and subsequently exchanged for EUR. However, before these payments can be received, some additional paperwork needs to be completed with the lending companies – we are now clarifying what needs to be done and will provide you an update on expected payment timelines.

First Russian lending company payment distributed to investors

This option is not viable for the lending companies regulated by the Russian Central Bank. The companies would risk their license, and that would negatively affect the recovery of investors’ funds from Russia. Also, these proposed alternatives are not allowed or available to Mintos under the regulator’s rules. We continued work on setting up a potential third-party provider who would offer a solution for both receiving payments in rubles and exchanging rubles for euros. We have submitted the required documents, and they are now being reviewed by the provider. This setup would enable transfers in rubles within the RUB 10 million monthly limit imposed by Russia.

Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets. Information published in this blog is marketing communication, not investment advice. Mintos shall not be responsible for any direct or indirect loss arising from the use of the provided information. Please note that at the moment, you might not be able to withdraw RUB from your Mintos investor account, or exchange RUB to EUR. In the upcoming days, we will make the exchange from RUB to EUR on investors’ behalf, for all who have available funds in RUB.

Visa, MasterCard, Paypal suspend activity in Russia, sanctioned banks are turning to China

J.P. Morgan Global Research forecasts energy prices in light of the Russia-Ukraine crisis. J.P. Morgan continues to expect an extended period of elevated geopolitical tensions and high-risk premium across all commodities with exposure to Russia. The EU has made a historic shift with the 27 members endorsing the use of the European Peace Facility to deliver €500M, or 10% of the total allocated to the facility, in lethal military weapons and additional aid to Ukraine.

The risks to global growth posed by the Russia-Ukraine conflict are materially altered by the launch of a full-scale invasion. So far, as of March 18, we have revised down our 1H22 global GDP growth forecast by 1.6%-pts at an annual rate, a drag that leaves global growth at 2.3% annualized, dipping below potential. We have raised our forecast for 1H22 global CPI annualized inflation to 7.1%, a multi-decade high, and a 3.2%-pts annualized upward revision to our 1H22 inflation forecast. Russia’s invasion of Ukraine will slow global growth and raise inflation.

€10 million recovered, agreements reached with most Russian lending companies

We also got a statement from this Ukrainian lending company’s management, find more here. We will keep you informed about any new developments related to this lending company. We’ve published two key articles further informing investors on Mintos about the economic impacts of the war in Ukraine.

The main impact was felt in new client performance, especially in February vintage payments. The effect was smaller on installment loans, but still, the net loss increased by 1% in the February vintage. However, starting from mid-April, portfolio and vintage performance started to improve, although as of now, the net loss is still 1% higher in April vintage than prior to 24 February. Therefore, despite the fact that there have been prerequisites for a decrease in payment discipline indicators, we do not point out material decreases at the moment.

Eurozone

As a result, many investors want to dump the Russian currency instead of holding it as it bleeds value. The ruble (also spelled « rouble »), as Russia’s fiat currency, is used for everyday transactions such as buying groceries and bus tickets. Investors also use the ruble to purchase company shares in Russia’s stock market. Currencies are impacted by world events around the clock, and the Internet and wireless communications provide almost instant access to even small investors.

TIAA Bank offers a WorldCurrency certificate of deposit (CD) that earns interest at local rates in specific countries. It also offers a basket CD that includes a mix of various currencies and a foreign currency account that functions like a money market account and allows https://investmentsanalysis.info/ the transfer of money between major currencies. The clearest way to buy Russian rubles is to present foreign currency to banks, hotels, and exchange bureaus within Russian borders. This option is, of course, limited only to those who are eligible to enter the country.