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MikroCredit Zrt., Founded two years ago, achieved a negative result of more than 1.2 billion guilders in 2019, even 200 million more than in 2018. They try to reduce risk through insurance mediation, writes Mfor.hu.
MikroCredit Zrt., Which offers fast loans, was founded in July 2016 by a Georgian company, Hungarian Georgian Investments Co LLC, registered in Tbilisi. However, its main owner since March this year is Michaeli Shabtai, who also appeared with Árpád Habony at night in Pest. He was the father of this program in 2012 -even as the president of the Parliament’s economic commission, Antal Rogán, today Viktor Orbán’s chief of staff, reminds the portal.
Your calculation has not yet come. MikroCredit started operations in December 2017. In its first business year, 2018, it made a quick loan of HUF 174 million, but at the end of 2019, its clients owed the company almost HUF 340 million, according to the company’s report. last year. More than forty percent of these roughly 340 million are due within 90 days at the end of 2019, with the remainder to be repaid within a maximum of one year.
I need money
In October 2018, MikroCredit issued a private bond issue, under which it raised EUR 1 million (HUF 337.1 million at the then exchange rate) and USD 490 thousand (HUF 144.4 million). Three-year securities must be repaid on October 15, 2021. The 9 percent annual interest rate can be considered quite high in today’s market environment, such a high level generally indicates the issuer’s risk.
In addition, the company borrowed several installments, totaling 470,000 euros, from its owner, Michaeli Shabtai, at interest rates ranging between 1.5 and 3 percent per annum, of which 86.1 million euros still due at the end of 2019. Repayment of a loan of EUR 200,000 (HUF 66.1 million at the time) raised by Kvevri Wealth Management LLC in February 2019 over 3 years at an exceptionally high interest rate of 12 percent per annum is still pending, which expires in February 2022.
MikroCredit needed these splashes of money and capital because it has generated losses since its inception. It closed 2018 with a negative result of almost one billion HUF, so its equity fell below 420 million of subscribed capital, to 78 million. For this reason, the MNB obliged Mikrocredit in June 2019 to do everything possible to comply with the legal requirements regarding the level of share capital by July 15, 2019 at the latest.
That did not happen then. Furthermore, the company suffered a further loss of more than 1,200 million HUF in 2019, even more than in the previous year, which has already made its equity negative (-114 million). There were no more calls from the central bank, which the company now complied with: the owner Hungarian Georgian Investments Co LLC immediately transferred 224 million HUF to MikroCredit’s bank account, and then additional amounts during the year, as a result of which additional payments this year amounted to 328 million. WHO.
MikroCredit significantly reduced its subscribed capital in February this year, from 420 million to 50 million. And Michaeli Shabtai has decided to convert his equity loans and interests into equity, which will result in a capital increase of MikroCredit of 120.2 million. “This move is ongoing on the company’s books,” the company’s 2019 report reads.
They became insurance agents
On the other hand, it is no longer mentioned in the official document that, according to the MNB website, MikroCredit Zrt. It is an intermediary under the Union Vienna Insurance Group as of September 1, 2020. “Union Insurer does not wish to comment on the matter,” one of the parties replied to the portal.
Zoltán Sárközi, President and CEO of MikroCredit, said: “We have become insurance intermediaries because we want to provide credit insurance to our clients, thus reducing our risk and that of our clients. We wanted to sell this product, regardless of the situation. of the virus, but it has accelerated the development of the product with us. Obtaining a multi-agency license is much more complicated and expensive, and at the moment we only want to deal with the sale of credit insurance. “
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