Paula Benita Garcia Rios

Paula Benita Garcia Rios is 39 years old and has three children. The older two are married and the youngest, at 21 years old, is finishing her studies. Doña Garcia Rios has run a clothing store for fifteen years, offering different styles of clothing and accessories to her clientele. She plans to use this loan to purchase clothing for men, women and children from contacts she has in the nearby cities of Managua and Chinandega. Doña Garcia Rios says that although she has to deal with customers who are reluctant to pay, her mother, who also ran a clothing store, taught her how to run a successful business. She dreams of home improvements and living a little more comfortably.




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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