IuteCredit Finance S.à.r.l.

  • ISIN: XS2033386603
  • Land: Luxembourg

Nachricht vom 06.12.2019 | 19:10

IuteCredit: Kosovo subsidiary with revocation of license without prior notice

DGAP-News: IuteCredit Finance S.à.r.l. / Key word(s): Legal Matter
06.12.2019 / 19:10
The issuer is solely responsible for the content of this announcement.

IuteCredit: Kosovo subsidiary with revocation of license without prior notice
Initiated investigation and evaluation of legal measures to resolve situation

Tallinn, Estonia, 6 December 2019. IuteCredit Kosovo (ICKO), a wholly owned subsidiary of IuteCredit Europe and sister company of IuteCredit Finance S.à r.l., today without prior notice, received notification from the Central Bank of Kosovo (CBK) that the ICKO microfinance license has been revoked with immediate effect. According to the CBK decision, the reasons for the revocation of the license are that the ICKO shareholder is not appropriate and that ICKO has not ensured the application of the effective interest rate communicated in the business plan at the time of submission in 2017.

The revocation of the license is completely unexpected. Neither ICKO nor the Group as a whole received any prior objections from CBK as to the appropriateness of the ICKO shareholder or any warning of revocation of license due to deviations to the business plan. ICKO even applied to CBK for a license to expand its business to payment services, which was submitted on 19 October 2018 and full documentation was completed on 15 April 2019 after CBK review. CBK had stated that ICKO would receive the reply to the license application after 90 days.

Regarding the assumed non-compliance with its business plan, ICKO had submitted a revised business plan to CBK on 14 November 2019, which reflected ICKO's adjusted business operations, including, among others, reduced effective interest rates. To date, no notification has been received from CBK on that business plan.

With regard to the appropriateness of the ICKO shareholder and the overall shareholder structure of IuteCredit Europe, the fact should be noted that the shareholder of ICKO and IuteCredit Europe shareholder structure have remained substantially unchanged since ICKO obtained its license from CBK. The controlling shareholder of IuteCredit Europe is Alarmo Kapital with 89.81% of the shares, with Tarmo Sild (CEO) and Allar Niinepuuu (Chairman of the Supervisory Board) being the ultimate beneficiaries of Alarmo Kapital.

The Company 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.

The ICKO portfolio amounts to 12.3 million EUR, which equals 11% of the Group's total balance sheet. ICKO does not have any creditors other than the Parent Company with a debt claim of 5.8 million EUR, and Mintos crowdfunding platform investors with a debt claim of 3.9 million EUR. The loan origination in Kosovo has been stopped. The collection of receivables from customers as of today is and remains ongoing.

"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 shareholder, creditor and investor 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.

Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: kristel.kurvits@iutecredit.com
Phone: +372 55 88 77 0

Evelin Kanter, Group Chief Legal Officer (CLO)
Email: evelin.kanter@iutecredit.com
Phone: +372 50 52 72 9

Aalto Capital (Investor Relations)
Sven Pauly, Consultant
Email: sven.pauly@aaltocapital.com
Phone: +49 89 898 67 77 0

About IuteCredit:
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 the extraordinary experience in personal finance by exceeding customers' expectations.


06.12.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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