We would like to inform you that we have introduced additional security measures for investments in Hipocredit-issued loans made in accordance with new Mintos policies (read more about these new policies here). These new security measures have been introduced to give investors additional protection against Hipocredit insolvency or default on their obligations.
What type of security measures are being introduced?
Mintos Finance has registered commercial pledges on the Hipocredit loans in which investors can invest according to our new policies. The pledges are registered in the Latvian Commerical Pledges Registry, which is a public pledge restration database. Because of this, these assets cannot be sold or re-pledged to another person.
What would happen if Hipocredit became insolvent?
In the unlikely event that Hipocredit were to become insolvent or default on their obligations, Mintos Finance, as the collateral holder, would be able to realize a lien on the assets pledged (i.e. loans), without judicial intervention or auctions. This also means that other Hipocredit creditors will not have the right to recover claims using the proceeds of pledged assets.
Liens can be used in two ways. These assets may be sold to regain funds to repay investors. Alternatively, if Hipocredit defaults on its obligations, Hipocredit borrowers will be notified to make future payments to Mintos Finance, which will divert these funds to investors.
Which investors does this security measure apply to?
This security measure applies to both investors who have already made investments in Hipocredit loans according to the new policies, as well as to those who will make investments according to the new policies in the future.
We would like to remind you that the most convenient way to make investments is using the Auto Invest function. We invite all investors interested in investing in Hipocredit loans under the new policy to create a corresponding Auto Invest portfolio.