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. 

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

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

Update from Kiva Staff on August 10, 2011

FundacionMujer has $17,446 in loans on Kiva currently in arrears out of a total outstanding portfolio of $90,500. As a result, its delinquency rate as expressed on the Kiva website is currently 19.28%.
 
As indicated by this delinquency rate, a number of FundacionMujer borrowers have struggled to make full payment on their original repayment schedules.  FundacionMujer shared that a significant number of these struggling borrowers have been chili farmers affected by a downturn in chili prices.  Another cause of delinquency, described in a series of Kiva journals posted earlier this year, was a bird plague that affected the crops of some farmers.
 
In order to better support these borrowers and also to increase the odds of successful repayment, FundacionMujer has been working with some of these borrowers in order to restructure their repayment schedules.  To date, 22% of FundacionMujer's Kiva loans have been restructured.  From data provided by FundacionMujer, the main reasons for restructuring appear to be: 1) production/sales problems (including agricultural production issues like chili prices and bird plague), 2) general economic difficulties, and 3) client health issues.
 
Almost half of FundacionMujer's restructured loans are actually repaying on time according to their new repayment schedules.  Due to technical limitations, however, virtually all of the restructured loans appear delinquent on Kiva.  This is because delinquency on Kiva is measured relative to the original repayment schedule as posted on the website at the time of the original loan.  As such, the previously reported delinquency rate does not adequately capture the true repayment behavior of FundacionMujer clients on their new, restructured repayment schedules.

Kiva will continue to work with Fundacion Mujer to monitor client repayments on their Kiva loans, both restructured and otherwise. We will keep this page updated with further updates as information becomes available.

Partner Profile

The Fundación Mujer (which translates as The Women's Foundation) is a leading organization specialising in the development of women entrepreneurs in Costa Rica. A non-governmental organization, Fundación Mujer was created in 1988 to serve the needs, both financial and personal, of women. They have established a solid reputation by providing quality financial and non-financial services to women entrepreneurs for the last 22 years.

Today a dedicated staff of 16 (as of 9/30/2011) works from two offices to fulfil Fundación Mujer's mission: To contribute to the comprehensive development of its clients through financial and non-financial services in order to improve their quality of life and the quality of life of their families.

Fundación Mujer offers several different loan products:
  • Banco Mujer (Women's Banks)- A Banco Mujer is a group of women from the same community that unite to obtain and administer a loan. Solidarity between the group members serves as a guarantee instead of members offering other forms of collateral.
  • Individual loans- Women who have been working in a particular field for over a year and who have a family member or friend willing to guarantee a loan can get an individual loan. The maximum amount of individual loans has grown over the years as Fundación Mujer's clients have grown their businesses.

To realize their mission, Fundación Mujer offers capacity building courses to complement the distribution of loans. Courses are provided in the following areas:

  • Small business management courses offer skills such as marketing, accounting, and computer skills
  • Human development courses focus on self-esteem, health, relationships, and other concepts promoting women's empowerment
  • Methods of production courses provide clients with concrete skills such as jewellery making, glass painting, or ceramics

Fundación Mujer's programs are all aimed at supporting the following objectives:

  1. To offer in, a systematic manner, a capacity building process that allows women entrepreneurs to become better prepared to face the current demands of the market for their products and services.
  2. To stimulate the personal development of women entrepreneurs and to facilitate the decision making process by inspiring confidence in their personal abilities.
  3. To foster and encourage the organization of women clients in an effort to create a supportive network of women entrepreneurs brought together by their relationship with Fundación Mujer.

Long considered a leader in the Costa Rica's relatively underdeveloped microfinance industry, Fundación Mujer has won numerous awards for transparency from Mix Market, has been recognized numerous times for the positive social impact of its programs, and has helped lead regional microfinance networks such as REDCOM (Network of Costa Rican Microfinance Organizations). It proudly serves a 99% female clientele.

Want to learn more about Fundación Mujer? Here's how:

  1. Join the "Friends of Fundación Mujer" lending team to get updates from Kiva Fellows and MFI Staff in Costa Rica here
  2. Make a loan to a Fundación Mujer client on Kiva today here

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Nov 23, 2009 Oct 12, 2005
Total Loans $1,113,550 $583,662,125
Amount of raised Inactive loans $24,425 $459,200
Number of raised Inactive loans 16 425
Amount of Paying Back Loans $461,850 $117,659,300
Number of Paying Back Loans 203 123,971
Amount of Ended Loans $627,275 $465,543,625
Number of Ended Loans 445 592,192
Delinquency Rate 1.55% 3.69%
Amount in Arrears $4,715 $2,830,722
Outstanding Portfolio $303,726 $76,636,170
Number of loanDelinquent 27 11,226
Default Rate 1.64% 1.15%
Amount of Ended Loans Defaulted $10,278 $5,333,846
Amount of Ended Loans $627,275 $465,543,625
Number of Ended Loans Defaulted 15 16,794
Currency Exchange Loss Rate 0.03% 0.08%
Amount of Currency Exchange Loss $331 $480,684
Refund Rate 1.32% 0.77%
Amount of Refunded Loans $14,650 $4,494,250
Number of Refunded Loans 7 5,038

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 94.93% 74.17%
Average Loan Size $632 $418
Average Individual Loan Size $1,027 $656
Average Group Loan Size $3,014 $1,827
Average number of borrowers per group 6 8
Average GDP per capita (PPP) in local country $11,100 $3,433
Average Loan Size / GDP per capita (PPP) 5.69% 12.19%
Average Time to Fund a Loan 6.51 days 5.56 days
Average Dollars Raised Per Day Per Loan $97.13 $75.25
  Average Loan Term 15.31 months 10.29 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 381 291,612
  Journaling Rate 53.13% 42.35%
  Average Number of Comments Per Journal 0.06 0.08
  Average Number of Recommendations Per Journal 0.17 1.90

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 21% PY 23.00% PY 33.64% PY
  Profitability (return on assets) 0.1% 0.5% -1.40%
  Average Loan Size (% of per capita income) 9.50% 28.00% 41.35%

Country Fast Facts

Field Partner Staff

Gabriela Cascante
Laura Castellon Venegas
José Castro Guevara
Teresita Cruz
Eledith Diaz Jimenéz
Eledith Diaz Jimenez
Bernardo Gutierrez Umaña
Arelis Leiton Aburto
Zobeida Moya Lacayo
Ivan Quesada
Juan José Salazar
Ivannia Sibaja Picado