Portfolio performance audit key facts

Dear investors,

We are grateful for your patience. During May and June we carried out Grupeer’s Portfolio performance audit. We must admit that the process was lengthy, and currently we are still waiting for an information update from part of our loan originators. Nonetheless we would like to share preliminary findings. Also, we would like to inform which investor groups are scheduled first to receive repayment.

In our portfolio currently there are 26 loan originators with a total investments of 46’970’030 EUR. 

We are aware that the most important question on the minds of all investors is when and how they will receive their scheduled payments principal amount and / or interest rates. To ease the process, we have split all loan originators into five groups: (1) ceased cooperation – Grupeer repays investments; (2) ready to pay as per schedule; (3) facing financial difficulties, have requested extension of repayment schedule; (4) exploiting the current situation, refusing to communicate and possibly avoiding their liabilities, and (5) facing financial difficulties, still working on action course.

In the first group there are 3 loan originators – Northcon Norge, Dziesyatka Finance, and Alibegov project with the total amount due 165’399 EUR, which Grupeer is ready to repay at the earliest opportunity. Total share from the portfolio 0.32%.

Second group comprises 19% of the total investment portfolio (9.05M EUR). These loan originators are: Finsputnik/Cash-U Finance, Credito, Finsputnik/DoZarplati, DoZarplati, Finsputnik/e Mkopo, A24 Finance and EcoFinance (Dyninno Fintech Holding).

They continue their operations and are ready to repay to the investors as it was scheduled in the agreement. In total, the amount on 30.06.2020 comprised 1 250’959 EUR. (principal and interest rate).

Third loan investor group comprises 22% of the investment portfolio (10.53M EUR).

These loan originators are: Cube Funder, Finsputnik/Mikrokasa, Finsputnik/Platforma, Monify and Nord Card.

They have admitted that they do have financial difficulties, but they are working towards a solution. We have reached an agreement with these loan originators that by 3rd of July, 2020, they are going to present the repayment schedule. We will inform investors of these particular loan originators about next steps individually.

Amount due on 30.06.2020 comprised 1’699’067 EUR (principal and interest rate).

Fourth loan originator group unfortunately is exploiting the situation, trying to avoid communication and possibly their liabilities towards us and their investors. We still have the intention to find resolution with these loan originators, if not we will be ready to take all necessary legal actions to protect the interests of our investors, and ensure debt collection. Finsputnik/IbanCar World, Finsputnik/Lime Loans South Africa, Pozyczka Pieniedzy, Right Choice Finance, Finsputnik/Saules Kredits, and Stik Credit. 

The total share from the portfolio of this particular group is 14% (6.38M EUR). Outstanding balance as of 30.06.2020 (principal & interest rate) 1’498’649 EUR. 

Fifth loan originator group is facing financial difficulties due to various internal factors (national currency fluctuation, national regulations, decrease of demand, cancelled investment deals etc.) and they are still analyzing the situation to establish the course of action. Those loan originators are: Finsputnik/Lion lender, Finsputnik/Monetria, Finsputnik/Epic cash, Finsputnik/Planeta Cash, and Primo Invest.

We expect to give feedback for all investors regarding this loan originator group till 20.07.2020.

The total share from the portfolio of this particular group is 44% (20.84M EUR). 

We have also established first investor groups that are scheduled for repayments. Those are investors, who:

  • had deposited money on their Grupeer’s platform account up till March 30th, 2020. and did not invest it – total amount due 56’655 EUR;
  • had invested in the projects that ceased their cooperation with Grupeer – total amount due 165’399 EUR;
  • had invested with loan originators that are ready to repay principal amount and / or interest rate according to the schedule – total amount due 1 250’959 EUR.

Total amount due for the above mentioned investors: 1’473’013 EUR. 

To repay those investors who invested in the projects that ceased collaboration with Grupeer and who did not invest yet in any project, currently we are negotiating with the payment system for one time exclusive payment. We will update you individually when this payment will take place.

However, for the investor group to whom we need to transfer their principal amounts and / or interest rate payment (total 1 250’959  EUR) – we need to renew our bank account operations.

For this group we shall update information in the investor’s cabinet till 03.07.2020., as well as after the repayment of the debt, regular payments will be calculated as per agreement with loan originator.

This brings us to the second part of the Portfolio performance audit – AML & risk management strengthening to comply with the requirements of the banks. We have updated our AML & risk policies, and submitted them to the banks for reviewing. It also included a requirement for our investors to update their “Know Your Customer” questionnaire. As of now, it is not finalized, and we are kindly reminding investors that without completing KYC update process, we might face difficulties to renew operation of bank accounts and thus ensure repayments.

Grupeer’s business model was fit for fast growth, while this situation was caused by the collision of several events like the collapse of two Estonian P2P platforms, banks tightening AML & risk requirements, health crisis and its impact on local economies and consumers. We could overcome each event separately but we were not ready to face them all at once. It is one of the reasons why the resolvement of this situation will require time, thus we are planning to update you once more about a detailed action plan on Friday, July 3rd, 2020. 

On July 3rd we also plan to inform in more detail how we will organize the transfer process of funds for those investor groups that are scheduled for repayments.

If you have any questions regarding the matter, please visit the section of the hot FAQ on our website. If you still cannot find an answer to your questions, please contact us via e-mail [email protected]

Thank you once more for your patience and understanding!

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