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Post by buttchopf23 on Oct 18, 2016 14:56:10 GMT
We would like to inform you that, going forward, there is a new structure for investing in Banknote loans. Banknote has extended its license for providing consumer credit services in Latvia for an indefinite period of time. The new structure takes into account limitations imposed by the license.
How will the new process work?
To obtain exposure to Banknote loans, investors will be able to invest in loans issued by Mintos Finance to Banknote where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Banknote will be pegged to a respective loan issued by Banknote to the final borrower.
Mintos Finance is a Mintos group company.
A detailed description of the new structure is available in the Mintos Finance loan contract and assignment agreement.
How will the new structure affect investors?
Investors making investments according to the new structure will henceforth gain exposure to Banknote-issued loans. Previously investors had direct claim against the final borrower; now investors will have a direct claim against the loan originator – in this case, against Banknote.
Taking into account that these changes affect the investment risk profile, Banknote loans will be removed from all current Auto Invest settings. To continue using the Auto Invest function to invest in Banknote loans, please renew your corresponding Auto Invest portfolio settings.
Please feel free to contact our customer service team with any questions or clarifications. We will be more than happy to assist you!
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Post by extremis on Oct 18, 2016 19:55:46 GMT
I am not sure what to make of this change. Is this the reason (i.e. a license problem) why Banknote had suddenly stopped issuing new loans on Mintos until recently? Also, how these changes affect the investment risk profile? Do we (as investors) take a higher risk now or lower? Finally, the Mintos announcement came only a couple of hours after this warning: p2pindependentforum.com/thread/6835/warning-invest-mintos-before-readingIs there any chance these are somehow connected? Is there any connection between Banknote and Mintos as suggested in the above warning message? Banknote (ExpressCredit, SIA) company information: www.lursoft.lv/uznemuma-izzina/?code=010325285 |
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Post by martins on Oct 19, 2016 11:36:10 GMT
Investors will have a direct claim against Banknote. That means that in the unlikely case of Banknote going bankrupt, investors would have direct claim against Banknote. This claim would be repaid from collections made from all assets of Banknote, including the loans issued by Banknote to their clients.
We have been working with Banknote on the change in investment structure for some time; the change in structure is not connected to the speculations mentioned in the link provided above. Banknote is defined as related party to Mintos based on IAS 24 guidance (overlapping non-controlling shareholders). If they continue to fall under the definition we will disclose them as related party in 2016 annual report. Except for Hipocredit, Mintos does not share controlling shareholders with any of the loan originators.
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Maestro
Member of DD Central
Posts: 87 
Likes: 24
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Post by Maestro on Oct 19, 2016 18:50:11 GMT
Investors will have a direct claim against Banknote. That means that in the unlikely case of Banknote going bankrupt, investors would have direct claim against Banknote. This claim would be repaid from collections made from all assets of Banknote, including the loans issued by Banknote to their clients. We have been working with Banknote on the change in investment structure for some time; the change in structure is not connected to the speculations mentioned in the link provided above. Banknote is defined as related party to Mintos based on IAS 24 guidance (overlapping non-controlling shareholders). If they continue to fall under the definition we will disclose them as related party in 2016 annual report. Except for Hipocredit, Mintos does not share controlling shareholders with any of the loan originators. Is Lendo also a related party to Mintos? Also, please respond to a few other questions I had related to Lendo which I posted in Lendo thread.
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Post by martins on Oct 19, 2016 19:06:20 GMT
According to IAS 24 (overlapping non-controlling shareholders) Lendo is related party to Mintos and transactions with them we will disclose accordingly in 2016 annual report. janis will comment on other questions you had in the Lendo thread. In general the fastest way to get the answer to any question is to contact our support at support@mintos.com. We browse forums sporadically. |
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