Vat P., Leng K., Chanphall P., Channy S., S. Heng A. and Saei C. all live in Preaek Thom Village in Kandal Province, Cambodia. The six members of this lending group are part of AMK’s Loan Workout Program. All clients have outstanding loans that are delinquent and they are currently unable to pay back the full amount of their existing loan.

Their business ventures, which they funded using their existing loan, have failed, putting them in a very unfortunate position. In addition, less work at garment factories and sickness in their families have drastically reduced other sources of income for each family. All six clients will use their loan to start a new business making T-shirts.

As part of AMK’s workout program, each client is given a workout loan that will be used to purchase sewing machines, an electricity line and additional sewing equipment. AMK has hired a tailor to train the group to make T-shirts. The material will be provided by AMK to ensure that quality material is used and so that the clients do not have to purchase it themselves.

AMK has partnered with Ahkun.org to sell their T-shirts online. Fifty percent of all profits will go to this group and the other borrowers in their village who are unable to repay their loan.

This program is in contrast to the traditional ways that microfinance institutions deal with delinquent clients:
• By rescheduling the loan and pushing off the problem to another day
• Repossessing items that the clients own, including their house or land.

Because of AMK’s strong social mission, AMK has created this program to provide an alternative solution to one of microfinance’s dark sides. We hope that Kiva Lenders will support us in this initiative.

All six clients of this group have had previous loans on Kiva:
http://www.kiva.org/lend/58345
http://www.kiva.org/lend/58347
http://www.kiva.org/lend/62359
http://www.kiva.org/lend/63814
http://www.kiva.org/lend/71201
http://www.kiva.org/lend/51660