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 — 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 Field 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 Field 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 Field Partner All Kiva Partners
  Start Date On Kiva Aug 2, 2009 Oct 12, 2005
Total Loans $6,907,050 $1,403,476,400
Amount of raised Inactive loans $0 $939,700
Number of raised Inactive loans 0 356
Amount of Paying Back Loans $1,428,750 $149,763,650
Number of Paying Back Loans 1,081 193,645
Amount of Ended Loans $5,478,300 $1,252,773,050
Number of Ended Loans 4,144 1,620,556
Delinquency Rate 88.42% 21.87%
Amount in Arrears $725,432 $20,431,877
Outstanding Portfolio $220,627 $93,421,438
Number of Loans Delinquent 1,078 130,112
Default Rate 0.00% 1.76%
Amount of Ended Loans Defaulted $0 $22,041,481
Number of Ended Loans Defaulted 0 53,405
Currency Exchange Loss Rate 0.62% 0.39%
Amount of Currency Exchange Loss $42,947 $5,432,766
Refund Rate 0.19% 0.63%
Amount of Refunded Loans $12,975 $8,878,850
Number of Refunded Loans 8 8,379

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 49.47% 76.47%
Average Loan Size $1,322 $393
Average Individual Loan Size $1,322 $609
Average Group Loan Size $0 $1,761
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $6,300 $5,749
Average Loan Size / GDP per capita (PPP) 20.99% 6.84%
Average Time to Fund a Loan 15.33 days 7.18 days
Average Dollars Raised Per Day Per Loan $86.26 $54.73
  Average Loan Term 23.83 months 11.38 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 7,341 865,518
  Journaling Rate 99.76% 43.37%
  Average Number of Comments Per Journal 0.02 0.03
  Average Number of Recommendations Per Journal 0.02 0.74

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 21% PY 23.00% PY 25.74% PY
  Profitability (return on assets) 3.7% 3.1% -1.78%
  Average Loan Size (% of per capita income) 44.60% 35.00% 12.55%

Country Fast Facts

Field Partner Staff

Inna Kerobyan
Khoren Kerobyan
Ashot Sargsyan
Yana Sargsyan