In 1993 the Nicaraguan and Sweden governments developed an agreement from which the Local Development Program, PRODEL, was born. This initiative had as a main purpose to improve the living standards of the low income families located in the north, and northwest territory of Nicaragua.
PRODEL became a non-governmental institution by legislative Decree in 2003. The institution promotes financial resources to housing improvement, microbusiness and neighborhood development through the allocation of resources in basic infrastructure and community projects.
PRODEL operates as a second floor bank, where regulated and non-regulated financial institutions, credit unions and limited companies dedicated to lending credits can apply for funding.
PRODEL receives funds from international financing organization, from the development Banks and international cooperation as a credit, trust funds and donations.
Quarterly the institution is put through a risk qualification exam. In previous years PRODEL has maintained its “A” rating given by the institution SCRIESGO. Each accountability period is audited by an international firm authorized by the bank superintendence.
Along its years PRODEL has worked with 19 micro credit institutions, providing more than 100,000 loans for microbusiness, 78,000 for home improvement, and more than 700 infrastructure projects, investing more than 90 million dollars.
The microcredit institutions that receive funds from PRODEL have a follow up and monitoring plan guided to achieve better quality standards in its financial development and in the fulfillment of the PRODEL social mission by being a local funding source that has knowledge of the market and enough installed capacity, this allows it to be more than a funding source but an strategic ally of the organizations to implement improving plans and reach objectives.
PRODEL rigorously applies a revision of its financial indicators and the ones of its clients using the CAMEL set of indicators, altogether evaluating quantitative aspects, related to governability, application of credit technology, satisfaction indicators of the final clients, information transparency and knowledge of the market were the intermediaries operates.
PRODEL funds do not seek to substitute or compete with the Commercial Banks, but to get to those sector that has a lack of guarantees and low income and cannot be subject to credit, the over indebtedness is considered an epidemic that impoverished the subjects to credit and for that reason the financial education concerning the right usage of the credit and to give each one its own capacity is an institutional priority.