Adapting to Emergencies

In 2020 we adjusted to the unique conditions by restructuring 1,033 loans. We also utilized our in-house custom software (SIACC), designed as a savings and loan database, to communicate with and track information from our borrowers. Maximizing the technology as a financial reporting module, we also conducted Poverty Probability Index (PPI) surveys, a human resource module with geo-location tracking. 

Adelante’s head office staff work on a rotating schedule and take turns in the office to ensure compliance with recommended standards and implement PPE protocols. The Tocoa Branch maintains healthy numbers in spite of having the highest staff turnover. This is a reflection of strong leadership and staff training. The Choluteca Branch is located in a more arid region with small villages scattered throughout the mountains. Difficult logistics and staff turnover have been a challenge. The branch has struggled with a high PAR>30 of 45%, which is a result of old loans not properly vetted or supervised, and the significant economic downturn from the pandemic.  We are actively working with the branch manager to address. 

Siguatepeque’s branch has done a great job of recovering loans in arrears by negotiating new more flexible terms with borrowers. Coffee and agriculture related loans have been hit hardest. We continue to offer agricultural loans with innovations to our strategy and an increase of commercial loans in the region. 

The Progresso Branch manages the largest loan pool, and was hit hardest by both hurricanes.  The City of La Lima was completely underwater for both storms. Most of the 325 borrowers displaced from their homes are from this region. We estimate a need of $200k to $300k of new loan funds to address Adelante Borrowers’ business needs to ensure families remain and have the tools and resources they need to rebuild stronger.