September 11, 2011
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
Kiva's new risk rating system, which now includes half stars, has enabled us to display ADIM's risk rating with a higher level of granularity. As a result, ADIM's risk rating will now be displayed as 2.5 stars instead of 3 stars. 
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here:
ADIM has been informed of the change in the display of their rating on Kiva's website.

Update from Kiva Staff on July 7, 2011:

In recent years, the "No Pago" movement (a movement for non-repayment of loans) has created concern around the increased risk of loan non-repayment by Kiva borrowers in Nicaragua. As a result, last year Kiva posted a loan alert on Nicaraguan loans, warning lenders about the potential risks of lending to entrepreneurs in Nicaragua. Earlier this month though, the government passed a new microfinance law that has addressed many of these concerns. As a result, the situation appears to have resolved itself and the "No Pago" loan alert is being removed.

We will update this page if there is any additional information available.

Update from Kiva Staff on July 19, 2010:

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 momentum behind the No Pago movement appears to have largely dissipated, as a result of the National Assembly's passage of a law in April 2010. This new law allows delinquent borrowers (as of June 2009) to re-negotiate loans with more favorable interest and terms. Borrowers who were part of the No Pago movement were required to approach MFIs to re-negotiate their loans by May 12th of this year. While many borrowers did approach MFIs to re-negotiate their loans, it still only accounted for a small percentage of the members of the No Pago movement.

For Kiva lenders who previously lent to Nicaraguan borrowers: 

  • if your loan had default coverage, then even if your loan was affected, the MFI will cover your loan for the full amount.
  • if your loan did not have default coverage by the MFI: If the borrower you lent to did not approach their MFI before May 12th, their loan cannot be re-negotiated under the terms of the No Pago movement resolution. Kiva is working closely with its Field Partners in Nicaragua to see if any Kiva clients have re-negotiated their loan under this law and will message to lenders accordingly.

For Kiva lenders considering making new loans in Nicaragua: it seems that as a result of the passage of this law and since the term for re-negotiation has passed, the microfinance situation is calmer in Nicaragua that previously. Kiva will continue to update the Kiva lender community if the situation changes significantly.

About ADIM:

--Founded in 1989 by Patricia Padilla, Sister Mary Alice McCabe and a small group of respected female entrepreneurs from the area of Masaya.

--A development institution that promotes micro-business development for the poor and provides access to capital for individuals who can benefit from micro-credit.

--More than 90% of clients are women (in addition to 47% staff and 100% of board of directors).

--Approximately 40% of clients are the primary income generators for the family.

--Of those 40%, 67% are between the ages of 46 and 61.

--Total number of clients: 3,738

--Coverage:  ADIM operates in the Southern Pacific region of Nicaragua, with offices in Managua, Masaya and Rivas.



--Mix/REDCAMIF Award of Transparency (2004 through 2009)

--ASOMIF Award for “Best Practice in the Area of Gender-Focus” (2009)


Financial Services:

--Group Loans/Solidarity Lending—This methodology promotes communication, trust, discipline and conflict resolution between groups of 3 to 6 individuals and accounts for 65% of loan portfolio.

--Individual Loans—Require a well-established business and account for 35% of loan portfolio.


Additional Services Offered

--ADIM offers courses in the following areas:

Business Development

Development of Personal Autonomy

Business Exchange

Coordination of Economic Actors

*All courses are offered free of charge for ADIM’s clients and are oriented towards the women of Nicaragua.


Show your support and join our lending team, Friends of ADIM. From all parts of the world we can make an even bigger impact by working together!

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Oct 1, 2008 Oct 12, 2005
Total Loans $2,928,575 $590,587,600
Amount of raised Inactive loans $0 $709,800
Number of raised Inactive loans 0 573
Amount of Paying Back Loans $380,700 $123,092,325
Number of Paying Back Loans 354 131,077
Amount of Ended Loans $2,547,875 $466,785,475
Number of Ended Loans 3,100 593,552
Delinquency Rate 0.72% 4.23%
Amount in Arrears $1,666 $3,465,940
Outstanding Portfolio $229,955 $81,929,648
Number of loanDelinquent 13 16,779
Default Rate 0.01% 1.15%
Amount of Ended Loans Defaulted $219 $5,349,645
Amount of Ended Loans $2,547,875 $466,785,475
Number of Ended Loans Defaulted 3 16,827
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $536,808
Refund Rate 0.12% 0.77%
Amount of Refunded Loans $3,375 $4,537,625
Number of Refunded Loans 6 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 91.87% 74.17%
Average Loan Size $330 $418
Average Individual Loan Size $508 $655
Average Group Loan Size $991 $1,828
Average number of borrowers per group 3.2 8
Average GDP per capita (PPP) in local country $3,636 $3,430
Average Loan Size / GDP per capita (PPP) 9.07% 12.19%
Average Time to Fund a Loan 7.44 days 5.59 days
Average Dollars Raised Per Day Per Loan $44.36 $74.76
  Average Loan Term 5.89 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 2,687 295,819
  Journaling Rate 74.72% 42.38%
  Average Number of Comments Per Journal 0.02 0.08
  Average Number of Recommendations Per Journal 1.16 1.87

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 49% PY 27.00% PY 33.46% PY
  Profitability (return on assets) 1.7% 0.9% -1.39%
  Average Loan Size (% of per capita income) 14.20% 40.00% 41.11%

Country Fast Facts

Field Partner Staff

Javier Flores
Nerendida Salvadora Guido Moraga
Jason Jones
Jairo Antonio Lugo Matey
Patricia Padilla
Maria Violeta Perez Muñoz
Ernesto Ruiz