MICROCAPITAL BRIEF: Online Fundraiser Kiva Discloses Delinquencies of Microfinance Institutions Alidé of Benin, FECECAV of Togo

Kiva, a US-based online microlending fundraiser, recently reported on delinquent payments due to Kiva by non-profit institutions L’Association de Lutte pour la promotion des Initiatives de Développement (Alidé) of Benin and Faîtière des Caisses d’Epargne et de Crédit des Associations Villageoises (FECECAV) of Togo.

Kiva was notified by Alidé that the country’s Ministry of Finance restricted the NGO’s repayment amount to Kiva to approximately USD 13,000 per month, which is less than the agreed repayment amount by an undisclosed amount. As Alidé has been able to repay Kiva in full and on time in the past, Kiva is committed to resolving the situation and maintaining a partnership with the microfinance institution (MFI). According to Kiva, it has loaned USD 2.6 million to Alidé over 5 years, and the MFI has reported return on assets (ROA) of -1.94 percent, delinquency rate of 34.89 percent and default rate of 0.26 percent as of April 2013. Alidé reported to MIX total assets of USD 4.3 million, gross loan portfolio of USD 3.5 million, 17,656 active borrowers and deposits of USD 1.9 million from 30,370 depositors as of 2011.

Kiva also reported that, although it received a payment of USD 19,700 in May from FECECAV, the cooperative is one payment behind schedule. According to Kiva, FECECAV has received total loans of USD 1.3 million from Kiva over 5 years, and it reports ROA of -2.78 percent, delinquency rate of 100 percent and a default rate of 0 percent as of May 2013. FECECAV reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 4.9 million, gross loan portfolio of USD 3.4 million, 6,171 active borrowers and deposits of USD 2.7 million from 75,824 depositors as of 2011.

By Jennifer Young, Research Associate

About Kiva
Incorporated in 2005, Kiva is a US-based online portal allowing individuals to make loans to microfinance institutions (MFIs), which then make loans to people with low incomes. In 2011, approximately USD 90 million in loans was raised by Kiva and disbursed by Kiva’s field partner MFIs in approximately 60 developing and rich countries.

Sources and Additional Resources

[1] Kiva, “Kiva Partners: Alidé of Benin,”
http://www.kiva.org/partners/104

[2] Kiva, “Kiva Partners: FECECAV of Togo,”
http://www.kiva.org/partners/99

MicroCapital Story, April 10, 2013, “MICROCAPITAL BRIEF: Online Fundraiser Kiva, Microlender Microinvest of Moldova End Partnership,”
http://www.microcapital.org/microcapital-brief-online-fundraiser-kiva-microlender-microinvest-of-moldova-end-partnership/

MicroCapital Story, January 25, 2013, “MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation (GCAMF) Loans $751k to Komida of Indonesia, $812k to Alidé of Benin,”
http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-loans-751k-to-komida-of-indonesia-812k-to-alide-of-benin/

MicroCapital Story, May 21, 2012, “MICROCAPITAL BRIEF: Kiva Boosts Funding Raised for Microfinance Loans by $18m to $89m in 2011,”
http://www.microcapital.org/microcapital-brief-kiva-boosts-funding-raised-for-microfinance-loans-loans-by-18m-to-89m-in-2011/

MicroCapital Story, January 26, 2012, “MICROCAPITAL BRIEF: Kiva Piloting Peer-to-Peer Microfinance Lending Platform Kiva Zip in Kenya, San Francisco,”
http://www.microcapital.org/microcapital-brief-capgemini-group-microworld-launch-digital-microfinance-platform/

MicroCapital Story, September 22, 2011, “MICROCAPITAL BRIEF: ‘Intercontinental Ballistic Microfinance’ Video Shows Graphic Of Kiva’s Worldwide Microlending Activities,”
http://www.microcapital.org/microcapital-brief-%E2%80%9Cintercontinental-ballistic-microfinance%E2%80%9D-video-shows-graphic-of-kiva%E2%80%99s-worldwide-microlending-activities-2/

MicroCapital Universe Profile: Kiva
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

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