In anticipation of similar developments, the company is in discussions with Mintos representatives in order to develop acceptable solutions for all involved parties on settling our current obligations. At this time negotiations are in progress and various possible scenarios are being considered. These occasional exchanges of investors’ funds in RUB to EUR will be an ongoing process until there are significant changes in the regulation of RUB/EUR transactions from Russia to companies located in the EU. In parallel, Mintos and the lending companies are working on potential alternative solutions (more about this below). In addition, the Bank of Russia recommended that market participants implement their own support programs. There are separate workstreams when it comes to establishing alternative routes for transferring payments from Russia.

Get this delivered to your inbox, and more info about our products and services. A long-running debate in asset allocation circles is how much of a portfolio an investor should… The surging value of the currency came as a surprise to many, who believed the political and economic situation in the country could tank Russia’s currency to unfathomable levels. The Ruble plummeted over 51% between https://investmentsanalysis.info/ that date and March 7, when the currency plunged to the $0.0065 mark before surging over 200% to reach a June. The currency became highly and unusually volatile since Feb. 23, 2022 the day before Russia invaded Ukraine but almost 1 year into the conflict, the Ruble has settled back near to pre-war levels. So, it is very important to understand the investment vehicle before you trade it.

Fed’s Kashkari watching interplay between inflation, interest-rates and banks

One of the best advantages of ETFs is the ability to enter certain markets (like Russia) without loading up on equities or battling index basket pricing. Instead, you can get instant exposure to Russian markets with one easy transaction. So for those who have a desire to invest in Russia, an ETF might make sense. MasterCard, Visa, and other card payment systems have suspended operations in Russia, meaning that MasterCard and Visa cards issued outside of Russia will not work at Russian ATMs or vendors. However, cards issued inside Russia will continue to work as long as the transactions you make are done within Russia.

• This Wednesday, we temporarily enabled currency exchange for KZT to EUR and EUR to KZT on Mintos.
• On 5 March 2022, the President of the Russian Federation issued Decree No.95.
• The overall deterioration of net loss was around 3% in February/March vintages, in comparison to immediately prior to 24 February.
• The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.

When the option of repayment requiring investors on Mintos to accept losses was presented by Revo Russia in September 2022, Mintos evaluated the alternatives. This included Revo Russia only transferring the maximum allowed of RUB 10 million per month allowed under the restrictions introduced by the Russian government. The CDs are subject to exchange rate fluctuations but feature a higher interest rate than dollar-denominated CDs. When the CD matures, investors get back fewer dollars than they invested if the dollar strengthened against the foreign currency. FDIC insurance protects against bank insolvency but not the currency risk.

Ways to Invest in Currencies

In case an investor is interested in an option to receive their payments in RUB, this would be theoretically possible, but not very straightforward or quick. The investor would need to reach out to Mintos with this request, and have an active account with a Russian bank. We are sharing the most recent information about details related to the process of transactions of money from Russia, in the case of Mintos and the Russian lending companies. Starting from 24 February, EcoFinance has introduced restrictions on [loan] approval and lower segments of score groups were cut. Collection resources and strategy were reinforced as such, to put more emphasis on affected segments. The active book started to grow in the middle of May, but growth is now more on the repeated long-term installment loans than on short-term PDL.

As the war goes on, we understand that it will take longer to receive the due payments from investments in loans from Russia and Ukraine. By their nature, these payments now don’t correspond to what pending payments are by definition. This change in the classification will not change our efforts to find ways to get money out of Russia as soon as possible.

What Are the Macro and Market Implications of the Russia-Ukraine Crisis?

In the financial statements and portfolio statistics that were sent for recent monitoring we did not see significant changes or deterioration in portfolio quality or financial stability of the Russian lending companies. In July, the company started to slowly roll out lending to new customers, with products and scoring methods adjusted to the new conditions, and in order to assess information about the market and clients in the current environment. As of 16 January, €6.6 million in war-affected loans have been repaid by the Russian lending companies. As of 1 March 2023, €10 million in war-affected loans have been repaid by the Russian lending companies. We will be regularly updating this thread, sharing relevant information about the war in Ukraine and sanctions for Russia that have a direct impact on Mintos business and matters of interest for investors.

A reform carried out during 1922–23 reestablished an orderly monetary system. The chervonets was introduced as the standard unit and the basis of the state bank’s note issue; the chervonets ruble, corresponding to one-tenth of a chervonets, how to invest in the ruble was made a unit of reckoning. The ruble remained a term of denomination for treasury notes and silver coins. In the post-World War II reform of 1947, the chervonets was abandoned as the monetary standard and the ruble restored.