Micro Banking in Guatemala

Posted by Zen Moisey 
 
Recently, a severe storm hit Guatemala and did major damage.  Zen Moisey has provided some information below from the Parrojas area where his "adopted daughter" Amelia lives and where our Club has funded some microbanks.
Zen and Canadian Rotarians, padrinos of Parrojas,
 
I have spoken to the women of Parrojas to see what is going on there and first the micro-credit status of the two groups, and secondly how can we best help these very hard-working and reliable women:
 
1)  The original group of women of Parrojas has 16 women who last received loans on August 25th, 2009 for twelve  months which should be August  25th, 2010.  Since they lost the major part of their crops before they could harvest, it would be unrealistic to expect them to pay their loans by August  25th or before.  They may have to change to other products since, at this time, it would not be practrical for them to plant corn but perhaps they can plant other crops which can still come up through the rainy season and be ready for harvest in five or six months. 
 
2)  The second group of women is Maria del Carmen and they just received their last recycle of loans  of Q1,800 each (approximately US$225 each to be returned after ten months, or by March  10, 2011. 
 
The major part of the problem seems to be in that most all the corn crop was lost and the
women cannot plant corn again at this time.  But they can plant some other vegetables which can still reach harvest before the end of the rains around October or November.  In order to plant other vegetables the women need fertilizers and they claim that what would be of major help to them under these circumstances would be the acquisition of some four or five bags of fertilizer for each borrower.  Here we would be talking about some 130 bags of fertilizer at a price of $8.00 each, or a total of some $1040. 
 
I believe the best thing we can do is to provide these hard-working women with the fertilizers they need and leave their loans untouched to be automatically extended for the time they will be able to pay their loans from a new production.  Would the "padrinos" be able to help with the amount indicated above so that we can help these women through this very difficult situation? I will be talking to  the women later today and in the following days to let you know how they are doing.  Many thanks in their name for whatever you can do for them. 
 
Saludos, Juan Forster

 
2010/6/3, Zen Moisey < zen@incentre.net >:

Hi Ben:......SEE BELOW FROM AMELIA IN PARROJAS, GUATEMALA:

More bad news from Parrojas where we have our Clubs 2 Micro Banks (both without a fault loan).   Parrojas is where you & yours, Lorne, Chris, Ralph and spouse, Doug, other Doctors, Juan Forester, Zen and spouse worked.    Chris and his International team  funded 2 other nearby Micro Banks, of which I do not know the details. 

The Eye Clinic & Micro Banks are probably the best assistance to help the locals out of a disaster; where the Govt. does Sweet Tweet.  Some can see better to help themselves and some have permanent financial resources to get the economy up and running sooner.  This is sustainability.

Only $2000 to $3000 will start a Micro Bank.  Hope West Edmonton funds more Micro Banks.  

Please put in the next Westerner.

See you at the Club meeting on the 21st.

Rotarian;

Zen

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Update as of June 16, 2010 from Juan Forster:

Zen and friends,
 
     Yesterday I visited the women of our two groups in Parrojas.  They told me about their plight - having lost their crops just before harvest - and their desire to replant as soon as possible.  Prior to visiting the aldea, I went by to make contact with the Taiwan Agricultural Mission to the Guatemalan Ministry of Agriculture in Chimaltenango.  The Chinese technicians are teaching local farmers how to make and apply organic fertilizer.  The women of our groups are wanting to apply large quantities of chemical fertilizers - at Q190 per bag of some 100 lbs - while organiz fertilizers and be obtained, from the Chinese ag statopm fpr Q40.00 per hundred pound bag, and it is healthier for the soil.!
 
     I spoke to the Chinese engineer in charge of the operation, and he will be leaving for Taiwan tomorrow for about three weeks.  He said he would be very willing to hold a capacitation demonstation for the women of Parrojas on July 16th and he noted it in his agenda.  I mentioned this to the women of Parrojas and they were not as enthusiastic as I had hoped they would be.  Many were using organic fertilizers from this same place, with some success, but they claim that they use a quantity of chemical fertilizer first and apply organic fertilizer as a second step, and that this gives them optimum results. 
 
Under the plan I had written on Monday I had put a figure of a bit over US$1,000 for the 26 women.  According to their modified calculations each woman would want something like two bags of chemical fertilizers at $23.75 each and two bags of organic fertilizer at $5.00 each for a total of $57.50 each.  We are looking at a total financing of $1,495.00 plus $200 for transportation to round out to $1,700.  The question is can the Canadian sponsors come up with all or part of this amount to help these women get  back on their feet? I assured the women that Uniendo America would be willing to let the current loans ride into the future without increasing the interest.  When the women would be able to sell a new production from a new planting, then we could reschedule the repayment of their current loans and pick up tthe regular rythmn hoping that their will be no further disasters in the meantime.  What can you do to help in this situation?  Saludos, Juan

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Uniendo America
Tel: 24713284
       24735667