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 EDESA's risk rating with a higher level of granularity. As a result, EDESA'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: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

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

Original Partner Description

EDESA provides the poorest rural communities in Costa Rica with financial services for the development of productive activities that allow individuals to move out of poverty.


EDESA’s focus is on rural communities without access to financial services, lending to microentrepreneurs living in poverty. EDESA believes that individual and communal empowerment is an effective way to combat poverty. As such, they work to equip rural entrepreneurs with the tools and opportunities within their own community to access financial services at the right time and with the right conditions. EDESA funds activities ranging from agriculture and cattle farming to tourism and retail to small restaurants and tailoring shops. Geographically, EDESA works in more than 100 rural communities in all regions of Costa Rica.

Established in 2005, EDESA provides credit services to a network of “Empresas de Crédito Comunal” or Community Credit Enterprises (CCEs), established by FINCA Costa Rica. The CCEs are small, grassroots community-owned financial organizations formed by rural community members. This unique methodology works to ensure that each family helped actively participates in the CCE in their community. By being participants and owners of these organizations, the beneficiaries also educate themselves on financial and business issues, as well as improving their self confidence by participating and being able to make decisions in a community organization. Youth also participate in the CCEs, thanks to an educational program where they learn how to invest, about issues of finance and business, and prepare to become the future entrepreneurs in their communities. Please click here to read more about the CCEs in general and here for an example of a particularly successful CCE, including video footage of the community and some microentrepreneurs.

EDESA firmly believes in economic development through the family nucleus. In each community EDESA works together with men, women, and children. As of March 2011, the rate of on-time repayment for EDESA's entire portfolio is 99%.

To see a video of EDESA and their work in Costa Rica, please click here.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Feb 9, 2009 Oct 12, 2005
Total Loans $1,156,400 $586,255,450
Amount of raised Inactive loans $0 $599,025
Number of raised Inactive loans 0 533
Amount of Paying Back Loans $370,850 $119,653,275
Number of Paying Back Loans 224 126,432
Amount of Ended Loans $785,550 $466,003,150
Number of Ended Loans 732 592,740
Delinquency Rate 0.04% 3.40%
Amount in Arrears $80 $2,667,913
Outstanding Portfolio $195,106 $78,383,347
Number of loanDelinquent 1 10,426
Default Rate 0.93% 1.15%
Amount of Ended Loans Defaulted $7,274 $5,337,667
Amount of Ended Loans $785,550 $466,003,150
Number of Ended Loans Defaulted 14 16,806
Currency Exchange Loss Rate 0.02% 0.08%
Amount of Currency Exchange Loss $209 $480,684
Refund Rate 2.59% 0.77%
Amount of Refunded Loans $29,900 $4,495,225
Number of Refunded Loans 29 5,039

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 46.56% 74.17%
Average Loan Size $1,204 $418
Average Individual Loan Size $1,204 $656
Average Group Loan Size $0 $1,827
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $11,100 $3,432
Average Loan Size / GDP per capita (PPP) 10.85% 12.19%
Average Time to Fund a Loan 6.47 days 5.58 days
Average Dollars Raised Per Day Per Loan $186.17 $75.03
  Average Loan Term 25.93 months 10.3 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 119 292,639
  Journaling Rate 14.94% 42.38%
  Average Number of Comments Per Journal 0.26 0.08
  Average Number of Recommendations Per Journal 4.16 1.89

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 15% PY 23.00% PY 33.64% PY
  Profitability (return on assets) 2% 0.5% -1.40%
  Average Loan Size (% of per capita income) 21.66% 28.00% 41.35%

Country Fast Facts

Field Partner Staff

Luis A. Arce
Damaris Arguedas
Felipe Bolaños
Luis Jimenez
Rosanne Lamplough
Maria Marta Padilla
Mónica Villalobos