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Mintos suspends loans to Kazakhstan amid political and social unrest

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Mintos has removed access to loans issued in Kazakhstan due to social unrest in the country.

It comes as Kazakhstan declared a state of emergency last week amid days of protests and clashes with police over fuel prices and the political system.

The alternative lending market said five lending companies have € 83million (£ 70million) in outstanding loans guaranteed by investors.

Mintos said it has taken steps to protect investor exposure by removing all Kazakhstan loans and businesses from its primary market and suspending the placement of new loans.

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The secondary market will remain open, however, so investors with these loans can still sell them if they can find a buyer.

“Once these five companies are removed from Mintos’ strategies as a safeguard for less experienced and new investors, investments in loans from these companies will no longer be available for standard withdrawal,” Mintos said.

“We are temporarily removing companies from Mintos’ strategies to limit new investor exposure to these loans and, therefore, existing investments in these loans will be marked as’ not available for withdrawal. ‘

“Liquidity is always possible by trading on the Mintos secondary market and this solution will be in place until we observe that the situation in Kazakhstan has stabilized.”

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