Eddy Pantaleon Arauz Cadena

For thirty years Eddy’s family has raised pigs, now that his parents are older, Eddy will take over. The family raises pigs and sells the meat, Eddy’s vision is to establish a store in which he can sell the family-raised pork. This loan will go towards the purchase of another pig and corn to fatten it. Because of the loan, Eddy is able to buy corn in bulk, ensuring that he gets a good price. When he is able, Eddy will purchase several pigs and raise them as a herd. Eddy has a long history with Fundación León 2000 and this will be his fourth Kiva loan, his credit is excellent. The cost of transportation is a difficulty he faces when he travels to different areas to find a good pig.


Important Information About This Loan
In mid 2008, a movement began in Nicaragua called “Movimiento No Pago” (a movement for non-payment of loans). This movement, supported mostly by farmers of the north of Nicaragua with ties to the left-wing party in Nicaragua, has been organizing protests and making it difficult for some branches of microfinance institutions to operate normally. This movement has been fed by the global the economic crisis, which has made it more difficult for Nicaraguans to pay back their loans. This group has submitted a law to the government to create a moratorium on debt repayment. If passed, the law could have a severe effect on the microfinance industry and banking sector in Nicaragua. Recent information indicates that the situation may be improving as the President of Nicaragua has spoken out against this law and would not support its passage in its current form. The network of microfinance institutions in Nicaragua (ASOMIF) has been negotiating with the government in support of an alternative proposal. Kiva, along with 25 other funders from 9 countries, has signed onto a letter to the Nicaraguan government urging a resolution to this situation without enacting a moratorium on debt repayment. The potential passage of the debt moratorium increases the risk of lending in Nicaragua. For more information, please see the following articles: http://impreso.elnuevodiario.com.ni/2009/09/24/nacionales/110236; http://www.laprensa.com.ni/archivo/2009/octubre/16/noticias/economia/355010.shtml

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