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MiCrédito and the Horsch Foundation Sign Agreement

By: Humberto Galo Romero

A new agreement signed by MiCrédito and the Horsch Foundation of Germany seeks to continue supporting the development of Nicaragua’s micro-entrepreneurs.

According to Traugott Horsch, representative of Horsch in Nicaragua, the foundation will provide new capital to support MiCrédito’s work.

“This is a fund of 150 000 euros (approximately US$ 170 000) which will be provided to MiCrédito over the course of five years, with a sustainable interest rate of only 3%,” outlined Horsch.

He added that part of the foundation’s policy is that these interest payments remain in Nicaragua in order to contribute to the well-being of small business people, thereby promoting the economic development of the country.

Sustainable Impact

Verónica Herrera, MiCrédito’s executive director underlined that the loan’s low interest rate is very important because it will allow the institution to provide loans to small businesspeople at lower interest rates.

“Currently, we serve approximately 7500 clients and the average loan size is US$ 1000. With this fund, we will be able to help about 170 families each year,” emphasized Herrera.

The fund will be primarily directed to credits for agricultural workers and to MiCrédito’s student loan program.

Herrera also explained that the interest payments generated by the loan will be directed to the preventive health program that MiCrédito operates with Fundación Chispa, which will help the clinic to provide more free medical check-ups.