MFI Report

CHF's Ryada is considered one of the first credit programs in the Palestinian territories. The program has worked throughout Gaza since its inception in 1994 with support from the United States Agency for International Development (USAID). The program expanded in 2001 to three governorates of West Bank, added additional services in Gaza in 2003, and in 2005 expanded to three additional cities in the West Bank. In 2006 Ryada experienced significant difficulties- when the Palestinian Authority, whose employees were Ryada's main client base (either directly as clients or indirectly as guarantors), were no longer able to pay salaries. The portfolio at risk over 30 days shot up to over 76%. Despite this, Ryada overall continues to improve. The portfolio recorded a substantial annual growth by 66% in terms of outstanding gross portfolio & 40% in terms of active clients, while the portfolio at risk over 30 days at the end of the Sept 2008 was 11%, down from 35% by December 2007, and down from 47% by the end of September 2007 and this trend is expected to continue. Ryada has also been able to recover 54% of the written off loans as of Sept 2008. Cacher