Zeira Smailova Cherkezova

This summer, Ziera has been making good use of the capital you lent. She has made two trips to Istanbul on the night train, where she buys most of the goods she sells. (Within the region, the Turkish manufacturing sector is considered the most cost-effective... unencumbered by EU workplace standards, yet enabled by a western work ethic). On each of these trips, she has brought her daughter with her and each has brought back three large canvas bags of inventory. Ziera has been selling predominately running shoes, sandals and smaller amounts of various other sport clothes - sport shorts, etc. Sales have been brisk and she is able to keep up with her loan repayments.

Zeira's prosperity seems to have led her astray.

A few months ago, one of her granddaughters was married. This was an occasion to be commemorated, no doubt. However, Zeira fell victim to one of the stereotypical Roma faults: spending too much money on “good times.” While the affair was not lavish by western standards, Zeira made the shortsighted mistake of spending nearly all of her cash on the wedding. As a result, she finds herself without the working capital to make her business run.

We here at the REDC are not inclined to extend her additional credit. While doing so would give her another chance, it would also send the signal to all of our borrowers in the Roma neighborhood that defaulting on a loan would be met with new credit. We think this is a recipe for disaster.

Instead, we’re encouraging some of our more prosperous businesses owners who work near her former trading spot as well as colleagues with whom she formerly traveled to Turkey to consider helping her out with very small personal loans. We think these neighbors, if they choose to help her, will be in a position to closely monitor her progress and exert a social pressure beyond that which we can.