Sri Lanka announces default. What does it mean for Robo.cash?
Sri Lanka temporarily suspended foreign debt payments as an emergency measure to avoid a hard default. Together with the International Monetary Fund, the Sri Lankan authorities plan to develop an economic recovery program “as soon as possible”.
What does it mean for Robocash?
We recognise this as a crisis and respond to it accordingly.
At the Group level, we are working on tightening risk criteria in the country and focusing on the clients with a high credit profile.
As for the platform, we are suspending the placement of new loans from Sri Lanka until the situation in the country stabilizes. Only 0.2% of current loans funded on the platform belong to Sri Lanka.
What does it mean for investors?
The principal as well as interest of the purchased loans will be paid to investors on time.
The Group has control over its loan originators, and has ample capital to cover all obligations to investors.
As for currency risks, they are hedged at the level of loan originators. The platform provides funding to loan originators in euros and gets returns in euros as well.