Back to the news
Fondo de Desarrollo Local (FDL) is a leader in the microfinance sector in Nicaragua. The institution primarily targets low-income individuals, micro-enterprises, and very small businesses in both rural and urban areas. Since its inception, first as an NGO in the 1990s and then as a regulated financial company since 2016, FDL has been committed to improving the living conditions of the most vulnerable Nicaraguans by providing loans, training, and support services to help them grow their businesses.
Nicaragua is one of the poorest countries in Central America. 46% of its population lives in rural areas. The country is governed by an authoritarian regime that crushes any space for dissent and drives people to leave the country: 10% of the population has emigrated since the violent political crisis of 2018. The economy is primarily driven by remittances from the diaspora. However, the State has established a legal framework allowing the continuation of microfinance activities by limited companies, which has enabled FDL to continue its activities in financing the informal sector.
FDL is the country’s leading microfinance institution, meeting the needs of more than 46,000 families in the informal sector. Nearly 70% of its loans are in rural areas, with a focus on financing and providing technical support for the coffee and small-scale livestock value chains, particularly regarding environmental issues.
