Fundeser Subsidy

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The Foundation for Rural Economic Development Partner (Fundeser), originally a Nicaraguan NGO providing credit and technical assistance to small holders, launched its operations as a fully-fledged financial institution, a financier in October 2014. The transformation into a financiera, regulated by the Nicaraguan Superintendence for Banks and other Financial Institutions, is paramount to allowing Fundeser to achieve greater scale and offer a wider range of services to rural populations. The transformation will allow to work in a secure environment and systematise all procedures and manuals that were not adequately developed before.

The recent recognition as a financiera is the result of successful collaboration and efforts of Fundeser’s staff and management with several development finance institutes and investors, such as BIO, the Dutch Entrepreneurial Development Bank (FMO) , the Belgian Microfinance Fund Advisor, Incofin Investment Management (IM), as well as the Inter-American Development Bank and the International Finance Corporation. BIO has been involved in providing technical assistance grants to support the transformation process:

- one technical assistance project financed by BIO, FMO and Fundeser and managed by Incofin IM, was aimed at accompanying Fundeser’s staff throughout the transformation process into a regulated entity, generating the relevant capacity to support the change in the short and medium term.

- a second technical assistance project co-financed by BIO focused on 3 areas: to provide Fundeser with transformation advice; implement an activity-based costing model; and implement an integrated branch management system.

 

Read more on BIO's investment in Fundeser here.

  • Investment amount (€):

    USD 77,500

  • Contract signature :

    2013

  • Nature of intervention :

    Technical Assistance Project