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KVIKU with statement regarding the measures of the Russian Central Bank

At iuvo, we continue to closely monitor the development of the conflict in Ukraine and its effect on the investments in Kviku loans that are made through our platform. In the last few days, the Russian Federation imposed additional restrictions on the repayment of liabilities to specific foreign creditors. Full information about the restrictions, the consequences from them, and the state of the company can be found in the official statement of Nikita Lomakin, CEO of Kviku, with whom we are in constant contact.

“On March 5th, The Russian Federation has identified “unfriendly states”. EU countries are included. According to the order, Russian citizens, companies and the state itself, its regions and municipalities, which have currency liabilities to foreign creditors from unfriendly countries, can pay for these loans in rubles with them.

For this to happen, the debtor may ask the Russian bank to create a special ruble account “S” in the name of a foreign creditor and transfer payments to it in ruble equivalent at the exchange rate of the Central Bank on the day of payment. After the transfer is made, the liabilities of the debtor would be considered as paid under the new law.

In order for the foreign creditor to receive the funds from special ruble account “S”, a separate approval from the CBR and government whould have to be received. We believe that in current geopolitical situation with CBR own reserves being frozen, the probability of such approval would be conisdered as low, and the creditors may get their funds stuck as well.

The Russian State Duma has also passed a bill enabling borrowers to request credit holidays. Among other subjects of the bill, it also includes citizens whose income has decreased by 30% as a result of sanctions. Borrowers would be able to request a grace period of up to six months, until September 30 2022, without being charged any fees. We have started to recieve first requests from borrowers regarding credit holidays and expect this number to increase in the coming weeks, as job losses increase after many foreign companies suspending their operations in Russia.

Kviku operations in Russia remain stable, with borrowers making payments to our local bank accounts. Issuance volumes to new POS clients have been reduced and we are currently focused on most profitable segment of issuance – repeat clients. NPL rates are currently unchanged and are monitored on a weekly basis.”

Nikita Lomakin

CEO Kviku

How the additional measures of the Russian Central Bank will affect the payments for the investments in Kviku loans made through the platform of iuvo?

We continue to constantly monitor the situation and to look for optimal strategies to protect the interests of our investors. The additional measures add another instance that controls the outgoing bank transfers from Russia.

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