Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status Update - July 14, 2015

Kiva’s partnership with Izdiharona was paused in August 2014. As noted in our last update, Izdiharona informed Kiva that they’re unable to send funds to Kiva due to government restrictions on capital transfers out of the country. Iraq is a difficult environment to operate in, given the day-to-day challenges posed by ongoing conflict in this region. Kiva has followed up with other actors in microfinance in Iraq and confirmed that other organizations have also had trouble transferring funds out of the country. We will remain in regular contact with this partner and will post updates to this page as the situation evolves.

Status Update - March 16, 2015
Kiva's partnership with Izdiharona has been paused. Izdiharona has informed Kiva that their local bank placed a stop on their attempts to send funds to Kiva. Izdiharona says that the Central Bank of Iraq (CBI) has not approved the transfer, which they hypothesize might be due to efforts by the CBI to impede the flow of funds from NGOs within Iraq to investors based outside the country. Kiva has been following up regularly with Izdiharona and has also reached out to other prominent organizations well acquainted with the Iraqi microfinance industry and a local attorney to determine the feasibility of these claims. To date, we have not uncovered any cases of this occurring with other organizations in Iraq. Kiva is currently seeking a proper avenue for making a formal inquiry with the CBI. Kiva will continue to follow up with Izdiharona to maximize the recovery of lender funds, and will share updates with Kiva lenders as the situation changes.

Partner Description:

Izdiharona for Economic Development is a nonprofit organization in Iraq that provides financial assistance to small and medium enterprises in need of capital and to individuals to generate income and improve their quality of life. Founded in 2008, it currently operates ten branch offices throughout Iraq in the provinces of Baghdad, Babil, Basra, Karbala, Messan, Sulaymaniyah and more.

The organization is dedicated to providing financial services to help develop the Iraqi economy, which includes a vast number of small and medium enterprises. Izdiharona's financial products are designed to reach existing businesses, startups and individuals. And it prioritizes serving members of the most vulnerable groups in the Iraqi population.

Izdiharona works with clients who are typically marginalized or underserved by mainstream financial institutions and existing MFIs. Without loans, these entrepreneurs would not have the working capital needed to start or grow their businesses. Kiva lenders’ funds are used to provide education, startup, green, and youth loans, as well as interest free loans to the ultra poor and loans that support income generating projects for women. 

A unique lending approach:

Since its inception, the organization has specialized in agribusiness and micro-business loans supporting farmers and micro entrepreneurs. Today, it has expanded its services, offering small and medium enterprise loans to entrepreneurs, home improvement loans, solidarity loans, youth loans and more.

Izdiharona has a track record of serving the needs of many of the most vulnerable populations in Iraq. 68% if its portfolio consists of micro loans between $300 and $2,999, and it continues to have the lowest average loan size compared to other MFIs in Iraq.

Additionally, women are playing an increasingly important role in the economic development of the country, and with 35% of its portfolio consisting of female borrowers, Izdiharona has the highest percentage of female clients of any financial institution in the country.

The organization works in a truly post-conflict environment. Nine out of its ten branches are located outside Kurdistan, in regions including the high-risk areas of Baghdad and central and southern Iraq. In 2012, Izdiharona implemented the Iraqi Vulnerable Groups Support initiative, disbursing loans ranging from $500 to $5,000 to Iraqi individuals disadvantaged due to their gender, religion, ethnicity, location or nature of their business activity.Through this program  Izdiharona had supported 424 clients with over $1 million in loans.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 9, 2013 Oct 12, 2005
Total Loans $2,334,750 $720,705,200
Amount of raised Inactive loans $0 $513,950
Number of raised Inactive loans 0 352
Amount of Paying Back Loans $2,177,150 $133,013,825
Number of Paying Back Loans 885 152,720
Amount of Ended Loans $157,600 $587,177,425
Number of Ended Loans 64 728,047
Delinquency Rate 99.43% 7.25%
Amount in Arrears $1,431,115 $6,246,136
Outstanding Portfolio $1,439,348 $86,144,297
Number of Loans Delinquent 885 20,682
Default Rate 0.00% 1.16%
Amount of Ended Loans Defaulted $0 $6,837,380
Amount of Ended Loans $157,600 $587,177,425
Number of Ended Loans Defaulted 0 19,782
Currency Exchange Loss Rate 0.00% 0.27%
Amount of Currency Exchange Loss $0 $1,945,073
Refund Rate 0.35% 0.68%
Amount of Refunded Loans $8,200 $4,898,125
Number of Refunded Loans 3 5,415

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 55.68% 74.40%
Average Loan Size $1,491 $416
Average Individual Loan Size $2,094 $653
Average Group Loan Size $3,207 $1,849
Average number of borrowers per group 3 8
Average GDP per capita (PPP) in local country $7,100 $5,938
Average Loan Size / GDP per capita (PPP) 21.01% 7.01%
Average Time to Fund a Loan 5.57 days 6.37 days
Average Dollars Raised Per Day Per Loan $267.63 $65.31
  Average Loan Term 11.68 months 10.77 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 0 354,026
  Journaling Rate 0.00% 41.33%
  Average Number of Comments Per Journal 0.00 0.07
  Average Number of Recommendations Per Journal 0.00 1.57

Borrowing Cost Comparison (based on 2013 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 28% PY 27.00% PY 31.97% PY
  Profitability (return on assets) 3.5% 16.7% -1.93%
  Average Loan Size (% of per capita income) N/A 26.00% 19.57%

Country Fast Facts

Field Partner Staff

Arafat Dajani
Salam Fadhel
Ahmed Hasan
Ahmed Taha