For the next two and a half months I'll be interning with People Helping People Global in Granada, Nicaragua and blogging about my experience. PHPG is a small non-profit NGO that give micro-loans to individuals in a few communities in Nicaragua (mostly around the Granada area, but they recently expanded to a community in Matagalpa.)
I arrived in Managua, Nicaragua on Thursday night and made it to a hostel for the night just before it started pouring. The hostel was quiet and nice with a few hammocks out by the pool. A girl in my dorm was headed to the same bus station as me, so we split a taxi and went our own ways: me to Granada, a colonial city on Lake Nicaragua, and her to San Juan al Sur, a beach town. The bus cost about $3-$4 dollars including a tip for the guy who showed me to the right bus and carried my bag. It was only about an hour to Granada. I found a hostel, threw my stuff in a locker and headed to the central park to meet two fellow interns, Shohta and Morgan and one of the staff members of People Helping People Global, Gilberts. From there we walked about a mile to a community called Pantanal, first meeting up with Marcela, the other PHPG employee. Alex and Isabell, the founders of PHPG were here last week, but I didn't get to meet them. They will be in Vermont during the 2 and half months I'm here.
In Pantanal, we visited the houses of six group leaders. PHPG lend out small amounts of money to groups of borrowers to improve or start their own business. Friday follows the new loan model in which loans are given out to groups of five or six. Each group elects a group leader who collects the repayments from the group members and whom we visit to collect the group's repayment. PHPG gives out approximately $100 to $200 usd to each client and if clients pay 60 cordoba (approximately $2.60 usd) a week, they can repay in a year. A large number of clients opt to pay more (100-120 cordoba) a week to pay back the loan faster.
Mondays (the old system) are a little different. The recipients on Monday were not organized into groups and so pay back as individuals. We have specific times to be at four different houses where recipients come to us with their weekly repayments. PHPG is phasing out this model because it is not as efficient as the newer system; the old model requires more house visits to clients that have missed repayments and more time waiting for clients to show up.
PHPG charge no interest. This is largely due to the hight interest rates that plagued Nicaragua around 2008 and led to the 'no pago' (non-payment) movement in the north in which President Ortega encouraged agricultural producers to refuse to pay back their loans. Instead of charging interest, PHPG uses donor money to pay the Nicaraguan staff and other expenses to make sure the people who need the money most are getting it. They have been successful with approximately a 95% repayment rate.
The group visits took several hours, partly because we had to wait about an hour for one woman receiving a loan to get home. But it was nice to chat with Gilberts and one of the group leaders Carlos for a while. My Spanish isn't great, but it's enough to get around and it will get better with practice. The community we visited, Pantanal had few paved roads, most were dirt roads or paths and we wound around visiting the six houses following Marcela and Gilberts. Most of the houses had barbed wire fences out front, mostly to mark their property, since the gaps in the wire are big enough for a dog or human to fit under. The floors were dirt and the ceilings were tin. The walls ranged from plastic to wood planks to tin. We were invited into one of the houses in which there were two beds, a freezer, a few chairs, and a tv. A few kids were on the beds watching tv and eyeing us suspiciously. Most of the kids we passed in the community yelled 'hello' to us and kept waving. Right now, repayment trips are on Mondays and Fridays, but they are adding 15 new groups in June, so we'll be plenty busy then!
I settled into a room in house a few blocks from the central park. Shohta, an intern from Japan is staying here and Phoebe will too when she gets back from a mini-trip around Nicaragua. Right now there is an older gentleman who is living in one of the rooms, but he'll be moving out next week. In total, there are 3 rooms, so it'll be a little intern house.
While walking around the central park in search of some breakfast, two high school girls approached me with a survey about what I think about Nicaragua. And then 3 boys with the same survey came up to me at a cafe. I think they were offended that I guessed their age was 14 (they're 16), but looked so much younger. They were friendly and were interested in my taste of music, particularly rock- they are slip-knot fans. Anyway, that is all I have time for now. I'm off to the market to buy a cell phone and some fruit.
