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 PADECOMSM's risk rating with a higher level of granularity. As a result, PADECOMSM's risk rating will now be displayed as 3.5 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.

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

The Institution


On April 1988, the Fund for the Development of the Communities of Morazán and San Miguel (PADECOMSM, its Spanish acronym) was born as a response to the vacuum that was created during the armed conflict in the region during 1980-1990. It was not until October 1994 that PADECOMSM formally became a legal entity so that it could continue to attend the social needs, such as health or education, in the region. PADECOMSM also had a Credit Program, which was created to meet the financing needs of small farmers. With time and its quality services, the financial arm of the organization expanded to other sectors such as commerce, small industry, services and consumption loans.

To better position itself in the regional market, in 2004 the financial arm of PADECOMSM moved its headquarters to the Morazan state capital of San Francisco Gotera. On May 25th, 2007, PADECOMSM split its financial arm into PADECOMSM Credito, a cooperative. Under this new structure, PADECOMSM continues its social mission while PADECOMSM Credito focuses on the microfinance sector.

PADECOMSM Credito has now expanded to five offices in the eastern part of El Salvador. Its branches are in San Francisco Gotera, Corinto, San Miguel, Jucuapa, y Transito. With each new branch, its strengthens the quality of its services and its aim to develop financial services with a focus on their social impact.

Vision

To become a leading financial institution that satisfies the needs of the small and micro entrepreneurs through outstanding services and relationships with clients.

Mission

We are a financial institution specializing in accessible and timely financial services for small and micro entrepreneurs, with profits and social responsibility; thus contributing to the improvement of our clients quality of life.

Branches

Currently PADECOMSM Credito has a network of 5 branches in the following geographic locations:

2004: San Francisco Gotera, in the State of Morazán.

2005: Corinto, in the State of Morazán.

2006: San Miguel, in the State of San Miguel.

2008: Jucuapa, in the State of de Usulután.

2010: El Transito, in the State of San Miguel

Values

Honesty: Transparency and clarity in any situation, including problems.

Loyalty: Alliance to the principles, norms, team values, to our clients, members and to the organization.

Respect: Recognizing others ideas, feelings and way of action; above all listening to others.

Transparency: Transparency in our information to clients, our investors, our colleagues, and the Board

Responsibility: Doing what needs to be done on the time schedule that was agreed upon, keeping in mind our agreements with our team, our clients, and our partner institutions.

Solidarity: Constant support to reach the final objective of each member of our team and the organization; sharing both triumphs and failures.

Humility: Humbleness to appreciate the contributions of others, the limitations of the organization, and the capacity of the members of our team.

Commitment: Committing to the objectives of the organization, integrating oneself to all the activities of the institution, to attain sustainable advantages.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 21, 2010 Oct 12, 2005
Total Loans $4,655,225 $575,063,750
Amount of raised Inactive loans $0 $304,725
Number of raised Inactive loans 0 278
Amount of Paying Back Loans $844,875 $119,196,175
Number of Paying Back Loans 1,274 125,162
Amount of Ended Loans $3,810,350 $455,562,850
Number of Ended Loans 7,323 580,593
Delinquency Rate 1.80% 3.45%
Amount in Arrears $10,871 $2,701,152
Outstanding Portfolio $604,617 $78,368,672
Number of loanDelinquent 111 11,379
Default Rate 1.83% 1.08%
Amount of Ended Loans Defaulted $69,590 $4,937,756
Amount of Ended Loans $3,810,350 $455,562,850
Number of Ended Loans Defaulted 269 15,266
Currency Exchange Loss Rate 0.00% 0.07%
Amount of Currency Exchange Loss $0 $406,266
Refund Rate 0.50% 0.78%
Amount of Refunded Loans $23,300 $4,479,350
Number of Refunded Loans 37 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 57.10% 74.23%
Average Loan Size $542 $419
Average Individual Loan Size $542 $657
Average Group Loan Size $0 $1,824
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $4,900 $3,440
Average Loan Size / GDP per capita (PPP) 11.06% 12.17%
Average Time to Fund a Loan 11.4 days 5.51 days
Average Dollars Raised Per Day Per Loan $47.52 $75.90
  Average Loan Term 12.18 months 10.24 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 4,381 286,267
  Journaling Rate 52.17% 42.42%
  Average Number of Comments Per Journal 0.01 0.08
  Average Number of Recommendations Per Journal 0.04 1.94

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 34.00% 31.00% 33.54%
  Profitability (return on assets) 2.6% 0.7% -1.15%
  Average Loan Size (% of per capita income) 32.10% 34.00% 41.59%

Country Fast Facts

Field Partner Staff

Juan Barbed
ROXANA ELIZABETH COREA
Jose Luis Gonzalez Renderos
Rubidia Marquéz de Amaya
ANA MARIA RIVERA TORRES
Gladis Sanchez
Maura Lizeth Vásquez