European peer-to-peer lender Grupeer claims it has €3.3m (£2.9m) available to repay investors but is waiting on some users to complete their anti-money laundering (AML) checks so they can access their funds.
The Latvia-based peer-to-peer lender suspended activity in March and said earlier this month that a fifth is ready to be repaid.
“Currently, we are ready to repay €3.3m but we need to renew bank account operations first,” Alla Kisika, chief executive of Grupeer, said.
“To that we need to renew our bank account operations, and for that we need finalise our AML policy updates.
“An essential part of the latter process is the know your client questionnaire information update.”
The platform has been auditing its portfolio in efforts to stabilise its platform and resume activity.
It has split its €46.9m loan portfolio into five groups.
The first group, accounting for three loan originators worth 0.32 per cent of the portfolio or €165,399, is made up of borrowers that aren’t cooperating, but Grupeer said it will repay these itself at the earliest opportunity.
The second group, made up of 19 per cent of the portfolio or €9.05m, is ready to be repaid as scheduled, Grupeer claims.
The third group, representing 22 per cent or €10.53m, has financial difficulties and is working on a repayment schedule, while the fourth cohort – worth 14 per cent of €6.38m – is said to be “exploiting the situation” and legal action is being considered.
Grupeer is still working with a fifth group, worth 44 per cent or €20.84m, on their status due to borrowers facing financial difficulties.
Not all investors are convinced by Grupeer’s stabilisation strategy and there are plans to launch legal action so they can recoup their funds.