Ziyad Al Kafarneh

Welcome (in Arabic, *Ahlan wa sahlan*) to our Kiva friends! Yesterday, on March 20, 2006, Ziyad received his Kiva loan in the amount of U.S. $800 for the purpose of purchasing goods to sell in his grocery store. Upon receiving his loan yesterday, Ziyad said, *This loan will give me the opportunity to buy some new goods to sell. I am grateful, thank you.* The Shurush Initiative and our Palestinian partner organization, the East Jerusalem YMCA, would like to to thank the generous Kiva lenders who made Ziyad`s loan possible. And we would like to wish Ziyad much success in his business -- in Arabic, *Natamanna laka al najah, ya Ziyad!* We look forward to updating you in the coming months about the progress of Ziyad Grocery, which is located in Al Rimal in Gaza. His first loan repayment is due by April 20. We wish Ziyad all the best as he works to support his five sons in junior high school and high school. And to our Kiva friends, thank you so very much -- *Shukrun khteer!*

Dear Kiva Lenders and Supporters,
As you know, the West Bank and Gaza are experiencing a severe economic crisis. In May, the World Bank predicted that by the end of 2006, Palestinian per capita income would decline by 30 percent; unemployment would increase from 23 percent to 40 percent; and poverty levels would rise from last year’s 44 percent to 67 percent [source: World Bank, “The Palestinian Fiscal Crisis,” May 7, 2006]. In Gaza, where Shurush’s eight Kiva borrowers live and work, the economic situation is worse than in the West Bank. Gazan entrepreneurs are working under difficult conditions and restrictions on movement. For additional reading, an informative article on Gaza’s economic situation can be found in this week’s New York Times: http://www.nytimes.com/2006/06/18/world/middleeast/18gaza.html

Yet despite dire times, Kiva borrowers continue to perform miracles in order to repay Kiva lenders.

We apologize if your repayments are delayed or if these updates are less frequent than desired. Working with our Palestinian partner NGO, the East Jerusalem YMCA, Shurush will keep you informed as frequently as possible. Shurush is committed to helping those in need through our program, so it is our sincere hope that your generous loans will be repaid despite the grave economic situation in the West Bank and Gaza.

If you have any questions, please do not hesitate to email us at info@shurush.org

Thank you for your understanding, generosity, and support. And a special thanks to those of you who have posted such kind comments on these journals; we will continue to pass along your words of encouragement to the entrepreneurs. Sincerely,Bryan Berkett and the Shurush Team The Shurush Initiativetransparent microfinance | proactive employment

Shurush would like to congratulate Basil Jarrar on his wedding, which took place June 29th!  Basil is one of the hardworking staff members of the EJ-YMCA who is responsible for the success of our joint venture to lend to Palestinians in need.  Without his incredible effort, this program would not be possible. 

Unfortunately, as you may have read in the news, the situation in the West Bank and Gaza right now is terrible.  Although Basil surely deserves a relaxing vacation, his honeymoon will likely coincide with a period of intense conflict and violence.  Hopefully, when he returns on July 15th, the situation will have calmed down a bit.

Congratulations Basil and may you and your wife have many happy and healthy years together!

Unfortunately, Ziyad's grocery store is located in an area that is incredibly difficult for our staff to reach during this time of war.  Although our staff has been able to collect repayments from other borrowers, it is very dangerous to go to Al Rimal.  Additionally, our Gaza office has been without power for a couple of weeks.  As soon as we are able to get to Ziyad, we will collect the repayments and send them to you.

Thank you for your understanding.

Dear Lender,

Unfortunately, this has been a very tough month for most of our clients and very few have been able to repay their loans. Although all our clients are trying to repay their loans, many of them have found this task impossible in the current climate. Additionally, our loan officers continue to have trouble reaching the clients. We continue to work with our clients to do what we can to make sure we can repay your generous loans. We will keep you updated.

On a positive note, Basil Jarrar, the project accountant, recently returned from a 14-day training seminar in Amman, Jordan on financial analysis and microfin (a microfinance accounting tool). Hopefully this will make our efforts even more transparent.

I hope you are well wherever you are,

Bryan

Dear Kiva Lender:

I am sorry to tell you that no repayments were actually paid in the Kiva program, because the situation in Gaza is very difficult these days. Our staff couldn't reach our office in Gaza because of the clashes fight between Fateh and Hammas over the past week. Over the past month, all the shops and workshops have been closed and the situation is very dangerous in Gaza streets as over 60 person were killed last month. I called our staff at their houses and heard the sound of explosions and bullets during our conservation on the telephone.

We just wait to see what the situation will be in Gaza. We hope it will be calm next month, but at the same time, we are not optimistic.

You can't imagine how very bad the situation is. I know it's a black picture, but we hope it will change.

Best,

Basil