Melba Isabel Lopez Escalante

Melba Isabel has three children, ages 6, 9, and 12, and all are in school. Melba Isabel is 36 years old. She manages two businesses: the sale of clothing and the butchering of pigs (pictured). She began her clothing business about six years ago, selling clothing on foot when her husband was ill and could not work for an extended period of time. She now uses her home as display space for her merchandise. She will use this loan to purchase more clothing merchandise, adding to her selection of products. Melba Isabel dreams of being able to ensure that her children don’t go without a meal everyday and that she will be able to provide a good education for them.



Important Information About This Loan
Kiva recently posted a message regarding the “No Pago” movement in Nicaragua (a movement for non-payment of loans). This movement, supported mostly by farmers of the north of Nicaragua with ties to the left-wing party in Nicaragua, has been organizing protests and had submitted a law to the government to create a moratorium on debt repayment. Initially it was unclear whether this law would pass, which would have had severe effects on the banking and microfinance industry in Nicaragua. However in the last month the executive branch rejected the law in its current form. The No Pago movement still exists but seems to have lost some steam. There is still a possibility that a law encouraging more restructuring of loans could pass next year, and microfinance institutions are voluntarily restructuring loans to delinquent borrowers, still increasing risk of lending in Nicaragua. However indications are that the situation is less dramatic than before.

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