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

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.

• 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