Lithuania’s borderless financing platform Debitum confirms that the ongoing war in Ukraine is affecting everyone.
Debitum is “strongly against” the Russian aggression and they are supporting their partners and their employees based in Ukraine. For investors, “who purchased claim rights related to borrowers from Ukraine, it means that there is a Force Majeure situation that makes all processes different from usual conditions.”
Debitum also mentioned that they “want to remind you – only one Loan Originator Chain Finance had exposure to the Ukraine market.” All other assets from Chain Finance and other loan originators “perform as planned.”
Chain Finance exposure in Ukraine “comes via loans issued to a local regulated car leasing company based in Kyiv.” The firm had “a stable financial situation before the war, and it was in talks with local financial institutions about further investments.” All investments (claim rights purchased) related with Ukraine “are at risk, there is a possibility to not gain expected return or lose principal invested.”
Information about war-affected loans from Ukraine
In this situation, “no guarantees such as BuyBack can take effect.” Therefore, regular asset repayments will “not happen until force majeure ends,” the team at Debitum noted while adding that the last interest was “repaid on 28.02.2022 and it was sent to all involved investors.”
Debitum further noted that the principal or interest repayments “will happen during Force Majeure.” The company clarified that the penalty interest “will not be applied as a reason for delayed payments is Force Majeure situation stipulated in the agreement.”
There is currently “no clarity about the total assets repayments in the future,” the firm added while noting that “a lot depends on how and when the war in Ukraine ends and the future prospects of the company.”
Debitum concluded:
“Our priority is our investor! We are working together with Chain Finance and the borrower from Ukraine to gather information about under assets to loans financed via Debitum – cars. When that information is fully collected and understandable, it will be possible to make conclusions and plans on how to ensure maximum repayments to investors. More information will be published in the upcoming weeks.”