Magaly Moreno

Thank you for your loan. It has been disbursed to Magaly Moreno by EDAPROSPO in Peru. We are excited to watch this business grow. Over the next 9 months, EDAPROSPO will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Mrs. Moreno works in a grocery/bodega at her house in Los Olivos, a northern suburb of Lima, Peru. Her experience with microfinance thus far has been a very positive one. She belongs to one of EDAPROSPO’s oldest groups in Los Olivos, a 5 year-old group named Señor de los Milagros (she jokingly says it was named because of the miracle of banquitos—lending teams). She feels that she has learned a lot in her group about not only financial matters but also moral issues. In successive loans, Magaly has bought merchandise for her store, fixed up the store by putting in a concrete floor, and most recently bought a glass counter. Her grocery bodega makes about 20 to 25 soles in profits a day, with chicken and vegetables yielding the most profit. She has worked in her bodega for 16 years and before that in Lima. She enjoys her job because it allows her to help her husband and see her daughters, ages 20 and 11. At 4.30am every morning she wakes up and goes out at 5am to buy the chicken and vegetables she will sell throughout the day. Her older daughter leaves with her at the same time but continues on a longer bus ride to her university on the south side of Lima (2+ hours away). At 8am, her younger daughter goes to school. At noon, Mrs. Moreno begins to prepare lunch and both daughters are usually back in time to share it at 1.30pm (her youngest can come home from school for lunch while the oldest is usually done with classes by then). Thank you for your loan to Mrs. Moreno and the impact it has had on her business and life, allowing her to continue to work from her house and see her daughters on a daily basis.

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During a routine audit of Field Partner EDAPROSPO, Kiva discovered a number of discrepancies between the information posted to the Kiva website and what actually occurred on the ground. Specifically, many loans uploaded to the website before December 2008 contain inaccurate loan amounts, terms and/or loan uses.

This is in violation of Kiva policy, and as such, as soon as we were alerted to a possible violation we placed EDAPROSPO on "pause." After placing them on pause, Kiva proceeded to execute a complete verification of every loan EDAPROSPO posted to the Kiva website; in total we examined 757 loans.

As a result of our audit, we have discovered that 52% of the loans posted to the Kiva website by field partner EDAPROSPO contain data inaccuracies. 98% of these inaccuracies pertain to loans posted to the Kiva website before December 2008, when EDAPROSPO was under a different management team. After significant management turnover at the end of 2008, almost all loans on the Kiva website contain complete and accurate information and these loans comprise only 2% of the total discovered inaccuracies.

You are receiving this email as we wanted to alert you that, after our verification efforts, Kiva cannot confirm that the specific loan you funded was actually disbursed. We can, however, confirm that the person you lent to is an EDAPROSPO borrower. Because EDAPROSPO has decided to guarantee all loans made on Kiva, you have continued to receive repayments on schedule.

Because the new management team has proven that they are committed to providing accurate and transparent information to the Kiva website, and because they have repaid almost all of the inaccurate loans on-time, Kiva has decided to re-open the Kiva-EDAPROSPO relationship. During this new "pilot" phase on Kiva, we will be working closely with the new EDAPROSPO team, including their internal and external auditors, to continually verify new EDAPROSPO loans posted to Kiva, and if we are alerted to any new inaccuracies we will pause their relationship with Kiva and follow-up accordingly.

If you have any questions, please visit Kiva's Help Center at http://www.kiva.org/about/help.