Guillermina Espinoza Ramos

Thank you for your loan. It has been disbursed to Guillermina Espinoza Ramos by Admic Nacional in Mexico. We are excited to watch this business grow. Over the next 6 months, Admic Nacional will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Dear Kiva Lender –

You are receiving this message because you made a loan to an entrepreneur in Mexico through Kiva’s Field Partner, Admic Nacional. As you may know, all entrepreneur profiles on Kiva’s website are posted by local Field Partners (microfinance institutions), which are organizations that lend to the working poor to help them lift themselves out of poverty. The role of the Field Partner is to screen each entrepreneur, upload his/her loan request on the Kiva website, disburse the loan, and collect repayments.

In early June 2009, during routine field partner monitoring at Admic, Kiva became aware of difficulties Admic was having, making it difficult for the institution to pay back its loans to Kiva on-time. When Kiva learned this information, we immediately placed Admic on pause on the website, meaning they could no longer post new loan requests on Kiva. All loans that had been uploaded to Kiva, but where money had not yet been disbursed to Admic, were refunded to Kiva lenders. In addition, Kiva reduced Admic’s star rating to 1 star.

A few weeks later, Kiva went on-site to Admic’s headquarters. During our visit, we were able to understand in more depth the challenges Admic is facing. In late 2008, Admic’s board uncovered an operational fraud at the management level that had detrimental effects on Admic’s portfolio quality. The management was removed from the organization and a new management has now taken over and improved the flawed internal controls that existed earlier. Admic is working hard to restore the health of its portfolio and continue to grow. However, given the severity of the fraud and the poor portfolio quality, Admic is unable to pay back its funders at this time, including Kiva, and continue operating to be able get back on its feet. Therefore, Kiva has agreed to restructure Admic’s debt, allowing Admic to pay the $49,889 owed to Kiva lenders in equal installments over a 24 month period. As this money is received from Admic, Kiva lenders will be paid back on a proportional basis.

All updates regarding Admic are posted directly to Admic’s partner page, which can be found here.