Melba Isabel Lopez Escalante

Melba Isabel has three children, ages 6, 9, and 12, and all are in school. Melba Isabel is 36 years old. She manages two businesses: the sale of clothing and the butchering of pigs (pictured). She began her clothing business about six years ago, selling clothing on foot when her husband was ill and could not work for an extended period of time. She now uses her home as display space for her merchandise. She will use this loan to purchase more clothing merchandise, adding to her selection of products. Melba Isabel dreams of being able to ensure that her children don’t go without a meal everyday and that she will be able to provide a good education for them.



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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