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 Ryada's risk rating with a higher level of granularity. As a result, Ryada's risk rating will now be displayed as 3.5 stars instead of 4 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: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

Ryada has been informed of the change in the display of their rating on Kiva's website.

Status Update, July 5, 2011

Ryada currently has $8,577 in loans on Kiva currently in arrears, out of a total outstanding portfolio of $55,280. As a result, its delinquency rate as expressed on the Kiva website is currently 15.51%.

Kiva's Regional Director and Field Support Specialist for Francophone Africa and the Middle East both visited Ryada in Palestine late last year, and worked with Ryada's staff in person to better understand the situation. It appeared at that time that the delinquencies resulted partly from true collections problems, and partly from technical issues that served to compound the delinquency in Ryada's Kiva portfolio.

The collections problems have been largely localized to the West Bank, particularly in Hebron. The Ryada team has recently dedicated more resources to this issue and is following up closely on the Kiva loans to ensure proper repayment in the months to come.

On the technical side, the challenges have been associated with the timing of repayments.  The repayment schedules for Ryada's borrowers are structured such that repayments are due at the end of each month. Ryada reports repayments to Kiva as of the end of each month.  As a result, if a Ryada borrower whose loan is posted on Kiva is as little as 1-2 days late with a repayment, that borrower will appear late for an entire month on Kiva.  Due to the fact that Kiva's systems are standard across our global portfolio, there is little we can do about this situation; as a result, Ryada's delinquency rate, as expressed on the Kiva website, may appear higher than they might otherwise.

In the meantime, Kiva staff has worked closely with Ryada's staff to help ensure accurate repayment reporting.  Ryada's management has conducted additional follow-up with Kiva borrowers, and continues to work to collect on these loans and to better understand the reasons for the delinquency. Ryada also stopped disbursing Kiva loans at all in areas with higher delinquency rates. 

We will keep this page updated with further updates as information becomes available.

Status Update, October 6, 2010

Kiva is investigating the cause of a recent increase in Ryada's delinquency rate. Initial indications are that the increase appears to be due to a technical issue rather than actual observed delinquency.

Kiva's Regional Director and Field Support Specialist for Francophone Africa and the Middle East are both scheduled to be onsite in Palestine at the end of this month, and will work to resolve the issue in person.

 

Status Update, January 19, 2010

As the one-year anniversary of the war in Gaza approaches, Ryada clients have begun the long road to recovery, having experienced significant damage to their lives and businesses. All Kiva clients in Ryada in Gaza have rebounded, their assets are intact and they are now repaying their loans on time.

While Ryada’s existing clients in Gaza are bouncing back, the organization has filled an increasing need for new microloans as Gaza’s citizens look to rebuild their homes or inject capital into their small businesses. In fact, although Ryada ceased operations during the worst of the fighting, it immediately resumed disbursements and between February and Nov 2009, it disbursed over 568 new loans amounting to more than $1.86M, (42 of these loans valued at $81K were funded under Kiva and have experienced zero delinquent repayments).

Ryada is committed to continuing its mission of economically empowering individuals and families in the Gaza strip and thanks Kiva lenders for their support in this critical time.

Status Update, January 22, 2009

Due to the recent conflict in Gaza, Kiva’s field partner Ryada was (like many other Palestinian microfinance institutions) forced to temporarily freeze lending and cease all operations in Gaza. We hope that all of Ryada’s borrowers and their families are safe.

Lenders should be advised that the majority of borrowers currently posted to Kiva by Ryada are based in Gaza and may therefore be affected by the current situation. In the coming weeks, Kiva staff will work closely with Ryada staff to assess the lending situation.

While the extent of the damage to Ryada’s operations is currently unknown, repayment rates may drop as borrowers focus on rebuilding their homes and businesses. However, loans to Gaza only constitute approximately one-fifth of the institution’s lending activity, with the remainder based in the West Bank. We are therefore confident in Ryada’s overall financial health.

Partner Description:

Ryada (formally The Access to Credit for Palestine Program – ACP) is a microfinance program, operated by CHF International, serving homeowners, small business owners and micro-entrepreneurs in the West Bank and Gaza to realize their dreams and improve their quality of life. Since Ryada began operations in 1995 it has become an instrumental provider of needed financial services in the Palestinian Territories. Ryada means ‘pioneer’ in Arabic and embodies the vision of the institution - a leader in the provision of financial services continuously striving to improve its quality of service.

Ryada’s mission is to provide demand-driven, diversified financial services in a stable, efficient and sustainable manner in order to improve the living conditions of the Palestinian people. It serves low to moderate-income Palestinians who cannot access credit from commercial banking institutions. Ryada provides needed financing for business development as well as for home improvements and new home purchases. Ryada serves the entire Palestinian Territories through its five branch offices.

Ryada is a member of the CHF International Development Finance Group, the Palestinian Microfinance Network and of Sanabel. Its profile is also on the MIX Market.