MFIs that have opted to share currency risk with lenders

[Guest]

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[Diane R]

As KivaFriends are uncovering MFIs which elect to share currency risk, it might be worth listing them in one place.


IMON  (Tajikistan)
Zene za Zene  (Bosnia and Herzegovina)



--Diane.

[wthepoo]

Thanks a lot, Diane, for starting this list.

Just a small point:

While - as far as I understand - an MFI opts in or out for all their local currency loans, I am not sure whether opting in wouldn't still allow them to post US$-denominated loans (=> currency exchange loss: "N/A").

IMON, for example, posted this one: http://www.kiva.org/app.php?page=businesses&showRepaymentDetails=yes&id=118275&action=about#payments today, obviously (though) just before the new "possible"-loans appeared.

Just saying that the list will be very important to be aware of the potential "possible"-trigger but that it might still be worth checking out the loans of these MFIs for possible exceptions. (?)

Best wishes,
Wolfgang.

PS: Two more $-loans from IMON:
http://www.kiva.org/app.php?page=businesses&action=about&id=118270&_tpos=13&_tpg=1
http://www.kiva.org/app.php?page=businesses&action=about&id=118266&_tpos=15&_tpg=1

[Patricia SF]

Here are examples of currency exchange risk or non-risk for 3 different Tajikistan loans.  The first two loans were posted today when the currency risk went into effect, and the last one was posted the day before the currency risk went into effect.
 
http://www.kiva.org/app.php?page=businesses&action=about&id=118479&_tpos=2&_tpg=1
Currency Exchange Loss:  Possible
Posted on June 25, 2009
 
http://www.kiva.org/app.php?page=businesses&action=about&id=118275
Currency Exchange Loss:  N/A
Posted on June 25, 2009
 
http://www.kiva.org/app.php?page=businesses&action=about&id=116504
Currency Exchange Loss:  Covered
Posted on June 24, 2009
 
 

[Jonathan]

This is our current list of partners sharing fx risk with lenders.  I would expect it to expand rapidly over the new few days...
-Jonathan

+-----------------------------------------------------------------------------------+
| name                                                                             
+-----------------------------------------------------------------------------------+
| AMK                                                                               
| Christian Rural Aid Network (CRAN)                                                 
| HOPE Ukraine/Nadiya, a partner of HOPE International                             
| IMON International                                                               
| Lift Above Poverty Organization (LAPO)                                           
| Local Enterprise Assistance Program (LEAP), a partner of World Hope International
| Manuela Ramos / CrediMUJER                                                       
| Microfinanzas PRISMA                                                             
| Microinvest                                                                       
| MLF MicroInvest, a partner of ACDI/VOCA                                           
| Paglaum Multi-Purpose Cooperative (PMPC)                                         
| South Pacific Business Development (SPBD)                                         
| Vision Finance Company s.a. (VFC), a partner of World Vision International       
| Zene za Zene, a partner of Women for Women International                         
+-----------------------------------------------------------------------------------+

[Mona]

This is our current list of partners sharing fx risk with lenders.  I would expect it to expand rapidly over the new few days...
-Jonathan

Thanks for the list, Jonathan! Normally I always try to keep positive, but as all facts and (IMHO better) alternatives about this were already dicussed months before without use unfortunately all I can say about this is that I really really do not like this ... 

[Patricia SF]

This is our current list of partners sharing fx risk with lenders.  I would expect it to expand rapidly over the new few days...
-Jonathan                                  

Thank you Jonathan for the information.

Patricia

[Mona]

If I may add something to my previous post: Spontaneously I am of the opinion that I will not make loans were the currency exchange risk is not covered by the mfi. If you stick to the decisicion you have made about this I would suggest to make it at least easier for people to really have a choice by adding a new section for sorting on the lend page.

P.s.: This is a bit an off-topic, but I think that it would be also helpful to add a possibility to display loans according to the number of stars the mfis have like "display only loans with 1, 2, 3, 4, 5 stars or display all". I know that this might be too much for the normal search but how about adding an advanced search?

[wthepoo]

If I may add something to my previous post: Spontaneously I am of the opinion that I will not make loans were the currency exchange risk is not covered by the mfi.

Same here - at least for now and unless it's a very very special loan.

I wonder how many lenders to the "Possible"-loans now realize that there is a new feature, that it can add an extra risk of principal loss and how to tell. The little yellow "new" is something, at least, but I don't think it's enough to communicate this change. Neither is the blog entry IMHO (especially since it's already only the third entry from the top...).

A pointer on the homepage and the check-out page would be my suggestion.

Best wishes,
Wolfgang.

[waywardcats]

I agree Wolfgang.

So far I have seen no announcement on the Kiva Facebook page where they might reach a number of lenders.  Also nothing on Twitter except this new tweet from Matt Flannery:

mattflanneryCurrency risk sharing is live. Congratulations to the Kiva engineering team for tackling the most complicated issue we've ever tackled...9 minutes ago from web

-Kerry-

[mejane]

This is our current list of partners sharing fx risk with lenders.  I would expect it to expand rapidly over the new few days...
-Jonathan

Like Mona, I too would like to remain positive.....
And I hope you are wrong Jonathan about this list rapidly expanding........

However, this was not explained well and unless one is a part of KF one is out of the "loop of information" as Kiva does a poor job of communicating things that have potentially big impact.  Sorry, but you get a D in my book for effective communication.  I think customer service is going to get a lot of unhappy messages in the near future when people do not get their money back AND they have no idea why.  Yes, you can point to the information, but taking care of your customers means they take care of you.  "Basic Business 101."
Which brings me to the last part of this........like has been said here before........"going to well one time too often"............has anyone considered "a rapidly expanding list" could be the death knell of Kiva lenders? 
Just something to think about. 
Jane