Peer-to-peer loan market Mintos revealed earlier this week that the loan company E-Cash informed them of his intention to “liquidate” the company.
The Mintos team noted that E-Cash is currently in the process of “defining the details” of how it plans to go out of business.
Mintos writes in a blog post:
“In view of the fact that E-Cash has missed its regular settlement payments to investors over the past 7 days and that the upcoming liquidation process has not yet been assessed by Mintos, we have decided to suspend the primary and secondary market company on Mintos. until the liquidation process is clearer and the current liabilities to investors in Mintos have been settled. The suspension is effective immediately. “
Mintos management added that the amount pending for investors stood at € 407,263 with “an average of 8 days pending, including today (as of April 21, 2021)”. Mintos further noted that the current amount of E-Cash loans “outstanding is € 816,205”.
Mintos also mentioned that “the current investment in Mintos is currently € 714,312”. The European marketplace lender further revealed that there were 11,516 investors with “active investments in E-Cash loans, with an average investment per investor of € 62”. Mintos added that since the loan company joined Mintos, investors have “earned € 272,715 in interest on their investments in loans issued by E-Cash.”
The Mintos risk score “for loans issued by E-Cash was 4 – a score indicating high risk in some or most of the assessed aspects of the investment opportunity,” the update noted while adding that he “now changes score withdrawn – suspended.” “”
“We are working with E-Cash management to resolve the situation. We will notify investors as soon as we have more information. “
While sharing key information about E-Cash, Mintos noted that the company offers short-term loans to Ukrainian citizens to cover unforeseen costs. The company would be licensed by the National Commission of Ukraine for State Regulation in the Field of Financial Services Markets (in November 2017) and “issued its first loan in December of the same year,” Mintos noted while pointing out that E-Cash “Joined Mintos in October 2019.”
Continuing to comment on the suspensions, Mintos noted:
“The suspension of a particular loan company occurs when Mintos steps into the market – primary, secondary or both – to stop investing because of concerns about a company’s operations. Once a business has been suspended, new investments cannot take place until the suspension is lifted or lapses. A two-market suspension aims to protect the interests of investors by preventing investment in new loans in the primary market or the sale of existing loans in the secondary market. “