It’s been almost one year since Birima in Senegal was suspended as a Provider on the MYC4 platform. Throughout this period we’ve been in dialogue with Birima to get them to honour the guarantee which was made to MYC4 and investors in September 2009 that no loans would default on the platform.
Despite our continuous efforts on the ground, we’ve unfortunately had no news to report to investors on this case – until now. Yesterday, we received a bulk repayment from Birima, and the funds are currently in the process of being distributed equally between the 23 defaulted loans. Although this is great progress, there is still a substantial amount outstanding and our lawyer in Senegal will continue to pursue this case.
On a more technical note, our system was not created to handle this type of situation, so instead of one payment on each loan, you will see a number of small recoveries coming in on the same loan (basically, provider and administrator fees are being re-entered to ensure that the whole amount is distributed). When all of the amounts have been processed, each of the 23 loans will end up with a recovery of 625 euro (14,375 euro in total). A significant part of the funds have already been credited to investor accounts. The remaining part is still pending in the system, but should be released as soon as possible.