Sergiu Codreanu

Thank you for your loan. It has been disbursed to Sergiu Codreanu by Microinvest in Moldova. We are excited to watch this business grow. Over the 11 months of this loan, Microinvest will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

This loan has been refunded for the following reason:

Many countries in Eastern Europe have been hit particularly hard by the global economic crisis, and many of the clients of Kiva’s Field Partners are facing increasing challenges in their business ventures. This is the case with the clients of Microinvest in Moldova. Since the beginning of 2009, Microinvest has seen increased delinquencies from clients unable to repay their loans on time (the ratio used to measure client delinquencies is called Portfolio at Risk).

As a consequence of the financial crisis and the corresponding increases in Portfolio at Risk, Microinvest has fallen out of compliance with several of its other funders. According to Microinvest, all funders have verbally agreed to issue waivers related to Portfolio at Risk, however not all waivers have been signed at this time. Microinvest is in the process of working through the situation with its funders and is updating Kiva regularly and expects to come to an agreement with these funders very soon.

Because the official response of Microinvest’s funders has not yet been confirmed, Kiva, in agreement with Microinvest, is temporarily setting Microinvest’s status to “Paused” until the funder waivers are complete and is refunding loans raised during the month of June. As soon as Kiva determines the situation is resolved, Kiva will restore Microinvest’s “Active” status.

Microinvest would like all Kiva lenders to understand that the organization has implemented a detailed and proactive crisis management plan to ensure the long-term stability of the organization and that the organization has the capacity to repay Kiva lenders on schedule during this paused period. With a well structured organization, good management and a solid equity base, Microinvest feels that they remain strong and they expect to emerge from this crisis intact.

For more information about the situation with Microinvest, visit their partner page: http://www.kiva.org/about/aboutPartner?id=17