Fund for Thanh Hoa Poor Women’s (TCVM) mission is to provide sustainable financial service to disadvantaged women in rural areas through developing a financially and institutionally sustainable microfinance institution that could provide client-oriented microfinance services to a large number of poor women in the Thanh Hoa province. Thanh Hoa is one of the poorest provinces in Vietnam. With a total population of 3,700,000, the poor households account for 37% of the total households in the province. Lack of capital is the most common challenge for the poor households to improve their economic status. TCVM is a response to this critical need of the community. The MFI’s target clients include: (i) Low income women who have ability to work but lack loan capital; (ii) Low income women with single family; (iii) Low income women with children who have dropped out of primary school; and (iv) Poor and poorest women who can not access any formal finance services.

 

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. 

 

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise TCVM's risk rating from 2 to 3 stars. The analysts have found that TCVM's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.

 

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: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

 

TCVM has been informed of our analysts’ findings and their corresponding change in rating.