| Location: | Managua, Nicaragua | Repayment Term: | 10 months (more info) |
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|---|---|---|---|---|
| Activity: | General Store | Repayment Schedule: | Monthly | |
| Loan Use: | Purchase goods | Currency Exchange Loss: | Covered | |
| Default Protection: | Covered |
She has managed to maintain her general store thanks to support from Ceprodel via microloans. Once again, she needs a loan so that she can purchase goods to sell them in her general store, to which she is so dedicated.
Important Information About This Loan
CEPRODEL's delinquency rate has been above historical norms recently; as of August 24h, 2010, its delinquency rate on Kiva was at 16.59%. Kiva explored this and related issues through its quarterly financial review process, during which Kiva requests financial statements from its field partners. An initial investigation has revealed that much of the cause appears to be related to the global economic downturn and its particular effect on Nicaragua. Nicaragua has been hard hit on several fronts in the last year. CEPRODEL has shared that the economic crisis reduced sales for many small businesses, and reduced overseas remittances upon which many borrowers rely for sustenance. In addition, we've heard reports of a sharp fall in the price of beef and pigs; also that Nicaragua was hit by a drought that further hurt agricultural production. Since CEPRODEL lends heavily in rural areas for agricultural purposes, their borrowers appear to have been especially hard hit by these factors, causing an increase in their delinquency. The organization hopes that things will start to stabilize with the new agricultural cycle in September. However, given this challenging situation, Kiva has felt it necessary to reduce CEPRODEL's risk rating from four to two stars.
Nicaragua Context
In order to help you better understand the potential risks of lending to entrepreneurs in Nicaragua, Kiva continues to provide information on the “No Pago” movement (a movement for non-repayment of loans). The Nicaraguan government appears to have implemented a plan to resolve the uncertainties raised by the previous No Pago 'non-repayment' movement that has affected the country. To learn more, please click here
Translated from Spanish by Elizabeth Casian, Kiva Volunteer
Ella ha logrado mantener su pulpería gracias al apoyo que le ha brindado Ceprodel por medio de los créditos y no podemos omitir que una vez más solicita un crédito con el propósito de comprar la mercadería para continuar ofreciéndola en su negocio de pulpería al que tanto se dedica.
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Repayment Received
