Defaults

[Guest]

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[wthepoo]

Hi,

due to 9 SAO-loans defaulting yesterday, the defaults are up to 1,835:

MIFEX 734   
WEEC 886
SEED 184
SAO 9
Shurush 7
East Africa Beta 7
REDC 6
GHAPE 2

In fact, it should IMHO be 11 SAO-loans and 1,837 loans in total because these two loans seem to be defaults, too, just falsely marked "Paid Back":
http://www.kiva.org/app.php?page=businesses&action=about&id=16808&_tpos=12&_tpg=2
http://www.kiva.org/app.php?page=businesses&action=about&id=16809&_tpos=13&_tpg=2
(I have sent an email to Kiva CS.)

You can read more about SAO and the reasons for the defaults here: http://www.kiva.org/about/aboutPartner?id=37

I am wondering, though:
* why the status is still listed as "Active", even though the update says the partnership has been closed (also: email to Kiva CS),
* why the update says $4,546 outstanding while the stats say $2,367 Amount of Ended Loans Not Repaid in Full, and my calculation based on the loan pages results in $3,047 (which fits the $2,367 figure, if you add the $680 missing from the two "Paid Back"-loans mentioned earlier),
* why the haste to default. Before PA-2, defaults had been of great importance for the lenders because they released any partial repayments received by Kiva. Now that we are receiving monthly repayments (in most cases), this reason is not valid any more (or only for far smaller sums). In this case, Kiva has received a repayment only in December, and some of the loans were not even completely due (http://www.kiva.org/app.php?page=businesses&action=about&id=23672&_tpos=9&_tpg=1, for example).

Best wishes,
Wolfgang.

[Laure]

Hi Wolfgang, Thanks for keeping track and thanks for updating us!

Laure

[wthepoo]

Update:

1. The status of SAO's partnership with Kiva is now registered as "closed".

2. According to Liz, the engineers are working on the bug that lets the two mentioned SAO-loans appear as "Paid Back" instead of "Defaulted".

3. There's a new "default" with Emprender (http://www.kiva.org/app.php?page=businesses&action=about&id=39925&_tpos=2&_tpg=1); my guess is it's another accident (reported it to Kiva CS). - EDIT(2): The loan is now active, again.

4. (btw...) This loan looks like it should have been defaulted instead of refunded: http://www.kiva.org/app.php?page=businesses&action=about&id=144&_tpos=1&_tpg=1

Best wishes,
Wolfgang.

[Liz]

Good catch with number four.  It looks like an old bug or admin error to me, so I filed a bug. 

[wthepoo]

Hi,

with the two mentioned SAO-loans now also officially "defaulted" - nothing unexpected there -, defaults are up to 1,837:

MIFEX 734   
WEEC 886
SEED 184
SAO 11
Shurush 7
East Africa Beta 7
REDC 6
GHAPE 2



Best wishes,
Wolfgang.

[wthepoo]

Another loan defaulted - most probably by accident (not even a month after it had been posted):

Esperanza Mirtala Hernández, MFI: Apoyo Integral (El Salvador)

I will send a mail to Kiva CS.

Best wishes,
Wolfgang.

****
EDIT: As reported by Tomcat, Kiva has changed the status to "Active", again.

[Tomcat]

Another loan defaulted - most probably by accident (not even a month after it had been posted):

Esperanza Mirtala Hernández, MFI: Apoyo Integral (El Salvador)

I will send a mail to Kiva CS.

Best wishes,
Wolfgang.

I see that there is now a journal entry on this loan to say that the default was an error:

"Due to an administrative error, this loan was marked by our system as defaulted. You may have received a email to this effect in the past. Fortunately, we caught our mistake and have fixed our error - Esperanza's loan has now been restored to good status. Please accept our apologies for any confusion this may have caused and thank you for lending through Kiva."


Tomcat

[wthepoo]

Another doubtful default: Susana Ramirez Alvarez (FVP, Mexico)

Reported to Kiva CS.

Best wishes,
Wolfgang.


EDIT: As of today, the loan to Susana Ramirez Alvarez is "Active", again.

[wthepoo]

And another (very) doubtful default: Ni Ketut Sukepen (Dinari, Indonesia)

Reported to Kiva CS.

So far, no defaults from PEMCI despite their new closed status and the following update to their FP page:

Kiva’s partnership with People Microcredit Investment Bureau (PEMCI) has been CLOSED. PEMCI, is based in Malaba, Northern Kenya, very close to the Ugandan border. As you may know, this region was severely affected by the riots and civil unrest that took place in Kenya in early 2008. A majority of PEMCI's entrepreneurs were adversely affected by this event, and this has resulted in a high number of defaulted loans.

PEMCI has made every effort to work with their clients to fully understand their unique situations and how it has affected their businesses and their ability to repay their loans. However, PEMCI has decided to default Kiva loans where (i) their clients have been unable to be located, (ii) clients' businesses have been destroyed, and (iii) clients may have otherwise suffered such extreme losses that their debt is causing them unusual difficulties. In certain cases, PEMCI is attempting to recover funds from borrowers, but the outcome of such collection activity is highly uncertain. While further collections are highly unlikely, if Kiva is able to collect further funds they will be distributed to affected lenders in accordance with the amounts loaned by such affected lenders to the defaulted PEMCI borrowers.

At the moment, PEMCI has 148 active and delinquent loans with $25,366 outstanding... we may see these default very soon.

Best wishes,
Wolfgang.

[mejane]

FYI
The 2 loans I mentioned here:  http://www.kivafriends.org/index.php/topic,2764.msg55366.html#msg55366
with PEMCI in Kenya have been officially defaulted by Kiva.  I just received news of this.
Jane