Our first defaulting loan?

About The Road's social project: topics, issues, questions and updates

Our first defaulting loan?

Postby petercasier on Thu Jun 25, 2009 4:21 pm

Michael, member of our Kiva lending team, lets me know one of his loans defaulted.

The notice on Kiva is published here: http://www.kiva.org/about/aboutPartner?id=66
His loan was to this lender.http://www.kiva.org/app.php?page=busine ... t&id=74937.

This is their latest update:
The internal fraud perpetrated by former members of FMSA’s senior management team has had a deep and lasting effect on their operations. Over the past few months, the organization has sustained heavy losses, has scaled back new disbursements, and has also been confronted with a degradation of borrower confidence in the markets that they operate in. As a result of these circumstances, their ability to collect on existing loans has been severely affected.

Because of this, FSMA does not have the ability to repay Kiva lenders at this time. Their delinquency rate has currently risen above 50%, and it will likely continue to increase over the next few months. FSMA’s management team is well aware of their obligation to Kiva lenders, and they are working to keep Kiva informed about developments that affect their capacity to repay their outstanding debt.

As new developments unfold, Kiva will continue to post updates to this page.
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