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


Status update — April 19, 2022

Nor Horizon has continued to face financial challenges throughout the COVID-19 pandemic, which were exacerbated by the conflict between Armenia and Azerbaijan. As a result, Nor Horizon has been unable to follow the payment plan that was previously agreed to, however still made some sporadic partial payments as cash became available. Kiva and Nor Horizon’s other lenders have agreed to forgive a portion of the outstanding debt in an effort to provide some relief given the ongoing macroeconomic difficulties that both the country and partner are facing. As Kiva will not be collecting the full amount, funds that were collected “in trust” have now been distributed to lenders on a pro rata basis. Any further funds collected will be distributed in the same manner.


Status update — March 19, 2021

Nor Horizon has been facing operational challenges due to the COVID-19 pandemic in addition to the aforementioned financial difficulties that have lasted over the past few years. Kiva, along with the group of other investors, have worked with Nor Horizon to determine a payment plan that Nor Horizon continues to honour. Nor Horizon is making sporadic partial repayments to Kiva, but those have yet to be distributed to lenders. Kiva continues to collect these payments “in trust” to ensure the full amount is collected before distributing funds to lenders. We appreciate your patience throughout this process.


Status update — March 8, 2020

Kiva, along with the group of other investors, continues to work with Nor Horizon during this period of financial difficulty. Nor Horizon is now making partial repayments to Kiva each month, but those have yet to be distributed to lenders. Right now we’re collecting these payments “in trust” to ensure the full amount is collected before distributing funds to lenders. We appreciate your patience throughout this process.


Status update — January 4, 2019

Nor Horizon is continuing to face financial difficulties resulting from economic conditions and political uncertainty in Armenia. Kiva is working alongside a group of other investors to recover funds owed to lenders and define the best path forward for our partnership. Kiva is in regular contact with Nor Horizon’s management team and they are dedicated to finding a solution in this difficult time.


Status update — December 7, 2017

Kiva recently re-assessed the level of risk associated with loans from this Lending Partner. During this process, our analysts gathered updated operational and financial information about the institution, spoke with key members of the staff and analyzed the Lending Partner’s loan products. As a result, Nor Horizon's risk rating is now listed as 1 star instead of 2 stars. This change was primarily the result of high overall portfolio delinquency and below average financial performance, which is due to problematic economic conditions in Armenia and difficulties faced in the agriculture sector in the Ararat region.


Partner description:


Nor Horizon” UCO LLC is a for profit, regulated, non deposit taking entity, established in 2006 in order to carry out micro lending activities in the distant regions of Armenia. The clients of “Nor Horizon” are micro-scale entrepreneurs in urban and rural areas involved in retail trading, small-scale manufacturing, processing, services, land cultivation and animal raising. They are also receiving loans for education and home improvements.


Mission

To promote poverty alleviation in Armenia, economic free and fair competition in the field of small and middle scale entrepreneurship through economic activity, to promote provision of availability of identity of financial services in far and border areas.


Vision

Become the best national Armenian micro-finance institution by providing high-quality financial and other business development services to enterprising individuals, who have strong will to establish and develop their own small-scale businesses, in underserved rural and urban markets.


Objectives

• To enable marginalized and poor people to achieve sustainable livelihoods

• To increase the ability of poor people to engage in productive activities and generate secure livelihoods through access to local and regional markets

• To involve poor people in business activities and to create sustainable income sources, to ensure community development and to facilitate refugees’ integration with the local population through creation of equal opportunities for access to market

• To promote close cooperation with all individuals, groups, associations and organizations willing to support the accomplishment of these objectives


History

Nor Horizon was originally started by Oxfam (Great Britain) in late 1995, as the Armenia Branch micro credit program. At that time, the organization was working in six regions through two local Non-Governmental Organizations (NGOs). The program targeted the vulnerable strata of Armenian population, mainly refugees, women headed households and local vulnerable people (especially unemployed women, families with more than one child, disabled people, women from the earthquake zone and families with elderly dependants).


At the end of October 2002, the existing micro credit program of Oxfam Great Britain - Armenia was registered with the state as an independent, non-commercial organisation named “Horizon” Fund. During the period from November 2002 till December 2006, Horizon Fund was acting as a microfinance institution and disbursed more than 11,500 loans to about 4,500 clients in the amount of 4,639,565,000 AMD (approximately 12,800,000 USD).


At the end of 2005, the National Assembly of Armenia adopted a law to supervise financial institutions and required all institutions to change their legal status to comply with the law. So beginning in early 2006 “Nor Horizon” LLC was established and licensed under supervision of the Central Bank of Armenia. Currently, Nor Horizon has 4 branches and 3 representative offices in the regions where formerly Oxfam program and then Horizon fund were working. This year, Nor Horizon will add another representative office, and one current representative office will become a full branch. ”Nor Horizon” UCO LLC is member of local and international associations, such as Microfinance Center, Association of Credit Organizations of Armenia and Association of Mortgage Market Participants of Armenia. Nor Horizon is one of the four founders of the local association.


Repayment Performance on Kiva

    This Lending Partner All Kiva Partners
  Start Date On Kiva Aug 2, 2009 Oct 12, 2005
Total Loans $6,907,050 $1,959,307,040
Amount of raised Inactive loans $0 $222,235
Number of raised Inactive loans 0 190
Amount of Paying Back Loans $1,389,600 $161,570,650
Number of Paying Back Loans 1,055 189,208
Amount of Ended Loans $5,517,450 $1,768,476,020
Number of Ended Loans 4,170 2,370,357
Delinquency Rate 100.00% 12.09%
Amount in Arrears $75,771 $12,154,807
Outstanding Portfolio $75,771 $100,506,286
Number of Loans Delinquent 1,055 72,423
Default Rate 0.40% 1.83%
Amount of Ended Loans Defaulted $22,290 $32,355,409
Number of Ended Loans Defaulted 26 84,925
Currency Exchange Loss Rate 0.62% 0.50%
Amount of Currency Exchange Loss $42,947 $12,005,888
Refund Rate 0.19% 0.54%
Amount of Refunded Loans $12,975 $10,526,300
Number of Refunded Loans 8 9,596

Loan Characteristics On Kiva

    This Lending Partner All Kiva Partners
  Loans to Women Borrowers 49.47% 78.24%
Average Loan Size $1,322 $392
Average Individual Loan Size $1,322 $589
Average Group Loan Size $0 $1,892
Average number of borrowers per group 0 8.3
Average GDP per capita (PPP) in local country $6,300 $5,600
Average Loan Size / GDP per capita (PPP) 20.99% 7.00%
Average Time to Fund a Loan 15.33 days 8.93 days
Average Dollars Raised Per Day Per Loan $86.26 $43.86
  Average Loan Term 23.83 months 11.47 months

Journaling Performance on Kiva

    This Lending Partner All Kiva Partners
  Total Journals 7,341 1,178,731
  Journaling Rate 99.64% 42.24%
  Average Number of Comments Per Journal 0.02 0.02
  Average Number of Recommendations Per Journal 0.02 0.57

Borrowing Cost Comparison (based on 2016 data)

    This Lending Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 21% PY 23.00% PY 27.02% PY
  Profitability (return on assets) -2.72% 3.1% -3.10%
  Average Loan Size (% of per capita income) N/A 35.00% 0.00%

Country Fast Facts

Lending Partner Staff

Ashot Sargsyan