Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.
Status update — December 1, 2015
AFODENIC and Kiva have come to an agreement to end their partnership after 8 years and close to 6 million USD in loans fundraised on Kiva. AFODENIC is expected to pay back their outstanding balance over the course of the next 4 years according to an agreed upon a payment plan with Kiva. Should this partner request to resume fundraising in the future, Kiva will first conduct any additional monitoring and due diligence tasks we believe necessary.
AFODENIC, La Asociación para el Fomento al Desarrollo de Nicaragua, seeks to use micro-credit to foster productive commercial activity for the sake of economic, social, and cultural development within vulnerable urban and rural sectors traditionally neglected by commercial banks. AFODENIC, which was established on May 12, 1999, is a non-governmental organization based in the capital city of Managua. Working on a national level, AFODENIC has branches in Managua, Juigalpa, and Nueva Guinea.
The organization strives to fulfill its mission by integrating economic and human resources in order to provide and adapt financial services aimed at improving the economic statuses of the families of clients—individual producers, organized cooperatives, and small and micro-entrepreneurs from both the city and the countryside.
AFODENIC provides micro-loans for agricultural activities, livestock cultivation, and house repairs, as well as microenterprises/small businesses. The organization’s clients in the farming industry work in a range of areas, including breeding, milk production, and the cultivation of pineapple, plantains, vegetables, coffee, fruit-bearing trees, and basic grains.
In 2006, AFODENIC began providing micro-credit within the most vulnerable neighborhoods of Managua, such as Hialeah, Memorial Sandino, Barrio 360, Villa Reconciliación, Laureles Sur, and Laureles Norte. AFODENIC has contributed to the improvement of these neighborhoods through the creation of jobs, improvements in home infrastructure, and the maintenance of small businesses.
One of AFODENIC’s most successful programs was the construction of nearly 500 homes in Juigalpa for people in the healthcare, education, and municipal services sectors. AFODENIC sought to combat the area’s housing shortage by building low-cost housing that could be purchased on credit at a low interest rate. The project, which was developed with the support of the city of Juigalpa, contributed significantly toward alleviating the housing problem in the area.
AFODENIC has worked on several social projects in the department of Chontales in conjunction with the Rural Institute of the Tropics. Together they have established various technical assistance and training programs, which have included assisting cooperatives with administrative and legal consolidation, creating a center to train farmers in the use of new agriculture technology, and teaching basic computer programs and Internet use.
As a social institution committed to improving the country, AFODENIC partnered with the Center for Socio-Educational Research at the UNAN-Managua University to promote research within the classroom at schools in Managua and Carazo. Also in the realm of education, AFODENIC recently initiated a new credit program to fund loans to students studying at universities or technical schools.
The organization’s funders have included Fundación Barceló, PTM-Mundubat, and Oikocredit. In addition, AFODENIC is affiliated with the Association of Microfinance Institutions from Nicaragua (ASOMIF), which is part of the Central American Microfinance Network (REDCAMIF).
AFODENIC began working with Kiva in early 2008 and has a 2.5-star field partner risk rating.
Status update — July 7, 2011
In recent years, the "No Pago" movement (a movement for non-repayment of loans) has created concern around the increased risk of loan non-repayment by Kiva borrowers in Nicaragua. As a result, last year Kiva posted a loan alert on Nicaraguan loans, warning lenders about the potential risks of lending to entrepreneurs in Nicaragua. Earlier this month though, the government passed a new microfinance law that has addressed many of these concerns. As a result, the situation appears to have resolved itself and the "No Pago" loan alert is being removed.
We will update this page if there is any additional information available.
Status update — July 19, 2010
In order to help you better understand the potential risks of lending to entrepreneurs in Nicaragua, Kiva continues to provide information on the “No Pago” movement (a movement for non-repayment of loans).
The momentum behind the No Pago movement appears to have largely dissipated, as a result of the National Assembly's passage of a law in April 2010. This new law allows delinquent borrowers (as of June 2009) to re-negotiate loans with more favorable interest and terms. Borrowers who were part of the No Pago movement were required to approach MFIs to re-negotiate their loans by May 12th of this year. While many borrowers did approach MFIs to re-negotiate their loans, it still only accounted for a small percentage of the members of the No Pago movement.
For Kiva lenders who previously lent to Nicaraguan borrowers:
- if your loan had default coverage, then even if your loan was affected, the MFI will cover your loan for the full amount.
- if your loan did not have default coverage by the MFI: If the borrower you lent to did not approach their MFI before May 12th, their loan cannot be re-negotiated under the terms of the No Pago movement resolution. Kiva is working closely with its Field Partners in Nicaragua to see if any Kiva clients have re-negotiated their loan under this law and will message to lenders accordingly.
For Kiva lenders considering making new loans in Nicaragua: it seems that as a result of the passage of this law and since the term for re-negotiation has passed, the microfinance situation is calmer in Nicaragua that previously. Kiva will continue to update the Kiva lender community if the situation changes significantly.
Status update — June 7, 2010
Kiva recently conducted on-site monitoring at Afodenic in order to re-assess the level of risk posed by this institution. The analysts found that a number of components that Kiva looks at during our due diligence process did not merit a 4-STAR rating and adjusted the rating to 3.
Repayment Performance on Kiva
|This Field Partner||All Kiva Partners|
|Start Date On Kiva||Dec 16, 2007||Oct 12, 2005|
|Amount of raised Inactive loans||$0||$498,200|
|Number of raised Inactive loans||0||431|
|Amount of Paying Back Loans||$738,875||$143,328,850|
|Number of Paying Back Loans||837||175,425|
|Amount of Ended Loans||$5,030,300||$794,137,975|
|Number of Ended Loans||8,271||994,902|
|Amount in Arrears||$245,563||$7,433,246|
|Number of Loans Delinquent||837||19,274|
|Amount of Ended Loans Defaulted||$36,347||$11,137,050|
|Number of Ended Loans Defaulted||91||31,506|
|Currency Exchange Loss Rate||0.01%||0.46%|
|Amount of Currency Exchange Loss||$822||$4,278,396|
|Amount of Refunded Loans||$20,500||$5,887,300|
|Number of Refunded Loans||32||5,924|
Loan Characteristics On Kiva
|This Field Partner||All Kiva Partners|
|Loans to Women Borrowers||63.21%||75.18%|
|Average Loan Size||$630||$401|
|Average Individual Loan Size||$630||$634|
|Average Group Loan Size||$4,547||$1,772|
|Average number of borrowers per group||7.4||7.8|
|Average GDP per capita (PPP) in local country||$4,800||$5,898|
|Average Loan Size / GDP per capita (PPP)||13.12%||6.80%|
|Average Time to Fund a Loan||9.96 days||6.93 days|
|Average Dollars Raised Per Day Per Loan||$63.26||$57.86|
|Average Loan Term||12.91 months||11.1 months|
Journaling Performance on Kiva
|This Field Partner||All Kiva Partners|
|Average Number of Comments Per Journal||0.03||0.05|
|Average Number of Recommendations Per Journal||1.57||1.20|
Borrowing Cost Comparison (based on 2014 data)
|This Field Partner||Median for MFI's in Country||All Kiva Partners|
|Average Cost to Borrower||13% PY||27.00% PY||26.04% PY|
|Profitability (return on assets)||0.2%||0.9%||-0.31%|
|Average Loan Size (% of per capita income)||131.70%||40.00%||17.73%|
Country Fast Facts
- Official Language:
- Spanish (official) 95.3%, Miskito 2.2%, Mestizo of the Caribbean coast 2%, other 0.5%
- Avg Annual Income:
- Labor Force:
- agriculture: 31%, industry: 18%, services: 50%
- Population Below Poverty Line:
- Literacy Rate:
- Infant Mortality Rate (per 1000):
- 20.36 deaths
- Life Expectancy:
- 57.48 years
Field Partner StaffMoyra Cruz
Rosa Esmeralda López
Francisco Montoya Galeano