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 — August 24, 2016

Kiva continues to be in regular contact with Izdiharona staff, and other contacts in Iraq to monitor the situation at the MFI and in the country to pursue repayment of funds owed to Kiva. At this time we unfortunately do not have a timeline as to when we expect these economic and financial conditions in Iraq to change, but Kiva will continue to monitor the situation and with the goal of working to maximize the recovery of lender funds.

Status update — January 28, 2016
Kiva staff met with Izdiharona’s Executive Director at a regional conference in October 2015 and he confirmed the organization’s willingness to repay Kiva once government restrictions on transfers of funds out of the country are lifted, allowing repayment to Kiva to occur. That said, at this time we unfortunately do not have a timeline as to when we expect these economic and financial conditions in Iraq to change, but Kiva will continue to monitor the situation and with the goal of working to maximize the recovery of lender funds.

Status update — July 14, 2015
Kiva initially stopped Izdiharona from posting new loans to the site in August 2014 due to questions about their adherence to Kiva's operating requirements. As noted in our last update, Izdiharona later informed Kiva that they’re unable to send funds to Kiva due to government restrictions on capital transfers out of the country, effective March 2015, at which time the partnership was paused. 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 $890,991,225
Amount of raised Inactive loans $0 $681,950
Number of raised Inactive loans 0 338
Amount of Paying Back Loans $2,177,150 $141,612,725
Number of Paying Back Loans 885 174,383
Amount of Ended Loans $157,600 $748,696,550
Number of Ended Loans 64 931,325
Delinquency Rate 100.00% 9.26%
Amount in Arrears $1,439,348 $8,582,739
Outstanding Portfolio $1,439,348 $92,696,873
Number of Loans Delinquent 885 31,763
Default Rate 0.00% 1.35%
Amount of Ended Loans Defaulted $0 $10,123,139
Number of Ended Loans Defaulted 0 28,452
Currency Exchange Loss Rate 0.00% 0.45%
Amount of Currency Exchange Loss $0 $3,973,667
Refund Rate 0.35% 0.64%
Amount of Refunded Loans $8,200 $5,731,525
Number of Refunded Loans 3 5,858

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 55.68% 74.98%
Average Loan Size $1,491 $406
Average Individual Loan Size $2,094 $638
Average Group Loan Size $3,207 $1,803
Average number of borrowers per group 3 7.8
Average GDP per capita (PPP) in local country $7,100 $5,928
Average Loan Size / GDP per capita (PPP) 21.01% 6.85%
Average Time to Fund a Loan 5.57 days 6.94 days
Average Dollars Raised Per Day Per Loan $267.63 $58.55
  Average Loan Term 11.68 months 11.07 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 0 458,765
  Journaling Rate 0.00% 41.60%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.25

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 26.52% PY
  Profitability (return on assets) 6.1% 16.7% 0.07%
  Average Loan Size (% of per capita income) N/A 26.00% 18.53%

Country Fast Facts

Field Partner Staff

Arafat Dajani
Salam Fadhel
Ahmed Hasan
Ahmed Taha