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 — December 15, 2016

For the last 12 months, Kiva has been working with Komak Credit Union to try to recover the remaining outstanding amounts due to Kiva lenders. The organization has faced serious difficulties following major currency devaluation and an economic recession in Azerbaijan. It has significantly scaled back operations and is no longer able to disburse loans. Kiva’s present assessment is that this Field Partner is unable to make further payments, and thus the remaining $86,230.16 in outstanding amounts due to Kiva lenders has now been defaulted. If Kiva is able to recover any additional funds from Komak Credit Union, they will be applied to lenders' accounts on a pro-rata basis.

Status update — April 15, 2016

Due to the difficult economic situation in Azerbaijan following on the December 2015 48% currency devaluation, and an inability to access liquid assets, such as cash or short-term borrowing, Komak Credit Union is still unable to repay Kiva lenders in full for repayments made by Kiva borrowers. Kiva is actively monitoring Komak Credit Union's evolving financial situation and will continue to follow up with the partner in an effort to recover payments due. We will provide additional relevant information to lenders as it becomes available. Komak Credit Union’s access to fundraising loans on the Kiva platform has been paused since December 2015.

Status update — February 22, 2016

Due to a recent 48% currency devaluation and economic difficulties in Azerbaijan, Komak Credit Union is facing cash flow issues due to late repayments from borrowers and has therefore failed to meet its payment obligations to Kiva lenders since December 2015. Kiva is working with Komak to develop a new repayment plan for these funds. Kiva will continue to pursue recovery of all outstanding funds and will pass those funds on to lenders if and as they're received. Kiva staff last visited Komak in October 2015.

Partner Description

Mission: Our mission is to provide our members with lending services to establish and expand their private businesses and, through that, to improve their living condition and create employment opportunities. 

History and Impact: Komak, which means "help" in Azerbaijani, is a credit union established in 1999 by 20 union members. Since 1999, Komak has established relations with the World Bank, Kiva, Danish Refugee Council, Social Fund for Development of Internally Displaced People in Azerbaijan, PLANIS, IKA and TURAN Bank, and has disbursed hundreds of loans to borrowers throughout the country.

Today, Komak has 4 field offices serving Baku, the capital of Azerbaijan; Absheron, the densely populated region surrounding Baku; Khachmaz, Azerbaijan’s northernmost city; and the rural region of Fuzuli. All branch offices are engaged full-time in providing microfinance services to internally displaced persons (IDPs) and other low-income groups within Azerbaijan (IDPs are refugees who have not crossed an international border).

In 2007, the Mix Market, a leading source of performance data on MFIs around the world, awarded Komak a certificate of transparency with 5 diamonds, the highest award given. In 2009, Komak was cited in a report by the United Nations General Assembly as one of Azerbaijan's prominent forces in restoring the local economy by giving small and medium enterprises access to credit.

As of December 2011, Komak serves more than 1,800 active members. Out of these clients, 80% are IDPs, 40% are female, 44% are engaged in trading or retail, 40% in animal breeding, 11% in the service sector, 3% in small-scale production, and 2% in other agricultural affairs. Komak's total outstanding portfolio is approximately US$4.6 million, and its average loan amount is $2,600.

Komak began fundraising on Kiva at the end of 2006. Since then, they have lent nearly $3.25 million to 2,175 borrowers through Kiva.

Despite the success of Komak's work, the demand for microfinance services remains very high in Azerbaijan. The country’s rural regions, where the unemployment rate reaches 30%, face a particularly difficult economic situation. Access to credit remains rare due to the dearth of credit organizations working in outlying regions.

In order for Komak to achieve better outreach in serving IDP families and female clients, reach new regions of the country, and improve its financial and organizational sustainability, there is a need for additional funding.

Komak can be reached via email at Join its Kiva lending team, Friends of Komak, and visit its blog to learn more!

Learn more about Komak's work in this video. 

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 9, 2006 Oct 12, 2005
Total Loans $4,828,675 $1,610,330,870
Amount of raised Inactive loans $0 $1,352,700
Number of raised Inactive loans 0 811
Amount of Paying Back Loans $0 $165,699,000
Number of Paying Back Loans 0 203,031
Amount of Ended Loans $4,828,675 $1,443,279,170
Number of Ended Loans 2,984 1,908,003
Delinquency Rate 0.00% 16.97%
Amount in Arrears $0 $17,691,152
Outstanding Portfolio $0 $104,235,070
Number of Loans Delinquent 0 75,071
Default Rate 1.73% 1.72%
Amount of Ended Loans Defaulted $83,644 $24,857,668
Number of Ended Loans Defaulted 126 62,254
Currency Exchange Loss Rate 1.40% 0.40%
Amount of Currency Exchange Loss $67,686 $7,011,687
Refund Rate 1.48% 0.59%
Amount of Refunded Loans $71,300 $9,486,250
Number of Refunded Loans 41 8,847

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 31.00% 77.44%
Average Loan Size $1,620 $392
Average Individual Loan Size $1,620 $601
Average Group Loan Size $0 $1,805
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $10,800 $5,672
Average Loan Size / GDP per capita (PPP) 15.00% 6.91%
Average Time to Fund a Loan 11.24 days 8.07 days
Average Dollars Raised Per Day Per Loan $144.15 $48.59
  Average Loan Term 14 months 11.36 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 704 980,885
  Journaling Rate 19.10% 42.26%
  Average Number of Comments Per Journal 0.21 0.03
  Average Number of Recommendations Per Journal 2.78 0.67

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 14% PY 29.00% PY 26.40% PY
  Profitability (return on assets) 8.2% 4.7% -0.60%
  Average Loan Size (% of per capita income) 46.70% 27.00% 11.35%

Country Fast Facts

Field Partner Staff

Diane Gasal