IuteCredit continues servicing existing loans in Kosovo and initiates a legal investigation of the recent decision by the Central Bank of Kosovo
Following last week’s Friday announcement, IuteCredit has shared its position on the situation and decided on the next steps.
IuteCredit Kosovo, a wholly-owned subsidiary of IuteCredit Europe, confirms that their microfinance license has been revoked with immediate effect on December 6, 2019. Central Bank of Kosovo (CBK) has appointed a liquidator of IuteCredit Kosovo.
According to the statement published by IuteCredit, the management team of the company comments that the revocation of the license and appointment of a liquidator is completely unexpected and comes without a prior warning. The company has immediately initiated an investigation and legal assessment of the facts in order to make full use of all available legal measures to help resolve the situation and protect the interests of IuteCredit Europe as a shareholder, creditor and investor in Kosovo.
Due to the revoked license, IuteCredit Kosovo no longer issues new loans in Kosovo, yet continues servicing the existing loans issued prior to the announcement of the CBK on December 6, 2019.
Accordingly, investors on Mintos will not see new loan offering for loans in Kosovo from IuteCredit. Mintos shall take required legal measures to claim from IuteCredit Kosovo monies due to investors on Mintos. Mintos is engaging local law firm in Kosovo for that purpose.
IuteCredit is cooperating with Mintos. IuteCredit management has confirmed its commitment to pay according to the provided group guarantee to ensure that Mintos investors are paid. Thus Mintos expects that investors shall receive their money from investments in IuteCredit Kosovo loans in a timely manner and in full.
“We simply disagree with the unexpected and drastic decision of CBK. As we are dealing with the materialization of a business risk associated with operating in different legal and administrative environments, we as shareholders, creditors and investors are convinced that a satisfactory solution can be found within the rule of law and dialogue in Kosovo and we will challenge the decision by all means as soon as possible”, said Tarmo Sild, Group CEO of IuteCredit Europe.
IuteCredit – established in 2008 – is a leading European personal finance company. The Group is specialized in consumer credits via its 100% subsidiaries using equity and loan capital. IuteCredit serves customers currently in Moldova, Albania, North Macedonia, Kosovo and Bosnia and Herzegovina.
As of 30/09/2019, the IuteCredit team had grown to 341 employees, including the Management and IT team. The entire IuteCredit team processed almost 470,000 loan applications in 9M/2019. IuteCredit manages more than 500,000 customers with over 90 million EUR of gross loan principal in its database. IuteCredit’s loan products are unsecured consumer loans with maturities between 1 month and 36 months and car-secured loans with maturities up to 60 months. The mission of IuteCredit is to create an extraordinary experience in personal finance by exceeding customers’ expectations.