Credit Watch - 15 September 2011

[Guest]

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[o]

It started!

The first ones to roll in for me were:

Capital Aid Fund for Employment of the Poor (CEP)
Hattha Kaksekar Limited (HKL)
MCC Mol Bulak Finance LLC
South Pacific Business Development (SPBD)
Women and Associations for Gain both Economic and Social (WAGES)

Please add yours!

[Diane R]

ACCION Texas-Louisiana
ACCION USA
ADIM (Asociación Alternativa Para el Desarrollo Integral de las Mujeres)
AFODENIC
Al Majmoua Lebanese Association for Development
Ameen s.a.l.
Apoyo Integral
Asasah
Asociación Arariwa
Banco D-MIRO S.A.
Capital Aid Fund for Employment of the Poor (CEP)
CHF International Access to Credit Services Initiatives (ACSI) Iraq
Credit Mongol LLC
EDAPROSPO
Emprender
FECECAV
FINCA Peru
Fundación ESPOIR
Fundación Leon 2000
Fundación Paraguaya
Grounded and Holistic Approach for People's Empowerment (GHAPE)
Hagdan sa Pag-uswag Foundation, Inc. (HSPFI)
Hattha Kaksekar Limited (HKL)
Hekima
HOFOKAM Ltd.
HOPE Ukraine/Nadiya
IMPRO
Komak Credit Union
Koret Israel Economic Development Funds (KIEDF)
LLC Micro Finance Organization Credo
Manuela Ramos / CrediMUJER
MAXIMA Mikroheranhvatho Co., Ltd.
MCC Mol Bulak Finance LLC
MiCredito
Micro Start/AFD
MicroKing Savings and Credit Company (MKF)
Opportunity Fund
PADECOMSM
Palestine for Credit & Development (FATEN)
Pro Mujer Bolivia
SEDA
South Pacific Business Development (SPBD)
Tamweelcom
Turame Community Finance
UIMCEC
Urwego Opportunity Bank of Rwanda (UOB)
Women and Associations for Gain both Economic and Social (WAGES)
Yehu Microfinance Trust


--Diane.

[Amy-in-PHX]

Credits today (the 16th) from:

Interactuar
FRAC
Edpyme Alternativa
Banco D-MIRO (I think this one has spread them over 2 or more days before)

[FoxyOxy]

(16th September)
Also:
BRAC Liberia
SMEP Deposit Taking Microfinance Ltd

Oh and on the 15th:
Alidé
Esperanza International Dominican Republic
Fondo Esperanza
Fund for Thanh Hoa Poor Women (FPW)
Hluvuku-Adsema
HOPE Congo
HOPE DRC
KADET (Kenya)
Micro Credit for Development and Transformation SACCO (MCDT SACCO)
Negros Women for Tomorrow Foundation (NWTF)
Paglaum Multi-Purpose Cooperative (PMPC)
Soro Yiriwaso (Mali)
Vision Fund Indonesia

[FoxyOxy]

Saturday September 17th:
FODEMI
Fundación Mario Santo Domingo (FMSD)
IMON International
Microfinanzas Peru (MFP)
MLO Humo and Partners
Nor Horizon International Credit Organization

[Linda C]

Sunday Sept. 18th

CrediComun - Mexico

[FoxyOxy]

Monday Sept. 19th
CREDIT (Cambodia)
Patan Business and Professional Women

[jennifer]

9/21
BRAC South Sudan
BRAC Uganda

9/26
Patan

9/27
Opportunity Fund

[FoxyOxy]

Also Tujijenge Tanzania and Xacbank (yey!) on the 22nd.

[jennifer]

9/29 Accion Texas/Louisiana

[FoxyOxy]

September 30th:
Grameen America

[hjs]

Can someone tell me please:

When a Field Partner does not settle the full amount owing for the month (and also holds back some payments from Borrowers who have faithfully repaid), how does KIVA decide which Lenders will be credited that month, and which Lenders will have their repayment schedule showing "Field Partner behind in repayment"?

Is there some system to it?  Are the older loans paid out before the newer ones?  Is it random? 

Thanks

[cpbailey]

If all the repayments by the borrowers are actually made (not just marked so), then repayments are prorated.  So if the MFI owes Kiva $50k and submits $40k, then each loan and lender will get 80% of the amount due.   This is a general thing, but when things are wild your yield may vary. 

Colette

[hjs]

Thanks Colette, but I'm not sure I quite follow you there.

One month for example (not this month), I saw posts on Credit Watch where a particular FP had sent through money and some Lenders had their loans credited but I didn't, even though the advanced payment schedule clearly said my Borrower had repaid.  Eventually it was paid but was very late.  There was no pro rata-ing there.  Then the next month that loan was credited on time, and another of their loans was paid late.

So I admit, I'm a teesy bit confuddled...     

[YowieFreak]

At one stage, loans were repaid based on the amount and order in which each Borrower repaid the Field Partner.

So take an example where one Borrower repaid $100 on the 1st of the month, then another Borrower repaid $200 on the 2nd of the month, and then the first Borrower repaid another $100 on the 8th of the month, and then a third Borrower repaid $400 on the 10th of the month (and we will stop there because my fingers will get tired from typing if I make the example too complicated).  Then assume the Field Partner repays Kiva (either through net-billing on the 15th of the following month, or because they make a subsequent manual payment) an amount of $350.

Kiva would then take $100 and credit it to the Lenders to the first Borrower, based on how many $25 "shares" of the loan each Lender has.  If there were 45 x $25 shares (so the total loan was $1125) then 35 "shares" would receive $2.23 each and 10 "shares" would receive $2.22 each, making a total of $100.00.  (I'm not sure how Kiva determines which Lenders get the extra cent, but it all evens out in the end [except when there are defaults] so hopefully that isn't a major concern to anyone.)

Kiva would then take $200 and credit it to the Lenders to the second Borrower, in a similar way.

Then Kiva would take the final $50 which they had received from the Field Partner and again credit it to the Lenders of the first Borrower.  (Therefore the Lenders to the first Borrower will have shared a total of $150.)

The Lenders to the third Borrower won't receive anything at this stage (hopefully they will get something when the Field Partner sends in further amounts) because none of the first $350 that the Field Partner received came from that Borrower.


When two Borrowers repaid the Field Partner on the same day, the amounts would be credited to the Lenders in the order of the loan ids (i.e. oldest [usually] first).


Note:  I am not 100% certain that this methodology is still applied, but I have no particular reason to suspect that it isn't.

[hjs]

Thanks YowieFreak - that makes sense.

[cpbailey]

I guess the prorating comes about when there could be financial issues at the MFI, and there is an uncertainty if payments will resume or be made in full.  There are a number of scenarios, and these exceptions are dealt with one at a time. 

Most of the time, I wait a month or two and it irons out.

Colette

[hjs]

Yes thanks Colette.  I was only asking about the normal month to month payments, not the type of situation when a FP goes "down the gurgler".

[FoxyOxy]

Yes thanks Colette.  I was only asking about the normal month to month payments, not the type of situation when a FP goes "down the gurgler".

"To go down the gurgler".  Is that an Australianism I'm not familiar with Helen?  I'm loving it anyway.  Superb!

[hjs]

"To go down the gurgler".  Is that an Australianism I'm not familiar with Helen?  I'm loving it anyway.  Superb!

Hmm yes, I guess it must be.   I looked it up online and it does say that it is a particularly Aussie version of "to go down the drain".  Just goes to show how careful we need to be with language in the global community...

Sounds better though, doesn't it!     

[hjs]

4th October - CRAN (Ghana).
Repayment for one of the two loans with CRAN I was waiting for.