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Wirecard suspected of extending loans of some US$1 bil to partner companies before June implosion

Bloomberg
Bloomberg8/10/2020 09:34 PM GMT+08  • 2 min read
Wirecard suspected of extending loans of some US$1 bil to partner companies before June implosion
German prosecutors suspect Wirecard AG extended large loans to partner companies before its implosion in June, at a time when the payments company was already facing media reports alleging accounting fraud.
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German prosecutors suspect Wirecard AG extended large loans to partner companies before its implosion in June, at a time when the payments company was already facing media reports alleging accounting fraud.

The prosecutors surmise the loans by the disgraced German firm may have been unsecured and may have been made to partner companies in Dubai, Singapore and the Philippines, a person familiar with the matter who asked not to be identified discussing the private information said.

The loans amount to US$1 billion ($1.37 billion) and Wirecard claimed they were for advance payments to merchants processing card transactions through its partners in Asia, according to the Financial Times, which reported the news earlier.

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