Interview with Eva Mendoza of Credisol

Eva Mendoza (left) touches base with an end borrower. Photo by Michael Kienitz.

Prior to Hurricane Mitch in 1998, Credisol, or the Local Development Fund of Honduras, had worked to help the poor of the Central Atlantic Region through development projects and training focused on overcoming the causes of poverty. However noble their projects at the time, Credisol was forced to re-evaluate its work in wake of the storm that then Honduran President Carlos Roberto Flores said destroyed 50 years of progress. Agriculture had played an important role in the regional economy for centuries and overnight, producers were left with flooded fields, dead or missing livestock, and destroyed infrastructure. This devastation spurred the development of Credisol’s microfinance program. Producers not only needed emergency relief assistance, but also financing that would put livelihoods back on the path to prosperity.

WCCN is proud to have Credisol as our first microfinance partner in Honduras. Our partnership comes at a time of change for both organizations. After 24 years of working solely in Nicaragua, WCCN has begun expanding into neighboring countries under a new name. Meanwhile, Credisol, with support, training, and technical assistance from long-time NICA Fund partner FDL (of Nicaragua), has undergone a reorganization process that has seen their credit project evolve into a larger-scale financial development program.

In April, Eva Mendoza, General Manager of Credisol visited Madison and was a special guest at WCCN’s Annual Meeting. During her visit, Eva kindly sat down for an interview with us, sharing Credisol’s history and goals for the future.

My name is Eva Mendoza. I work for the Local Development Fund of Honduras — Credisol, OPDF. What our institution seeks to do is contribute to the development of families, and especially rural families through microfinance services that ultimately contribute to improving families’ living conditions.

Credisol was founded at the beginning of the '90s by the Catholic organization CARITAS in the Trujillo diocese. After Hurricane Mitch in 1998, the program took on greater importance, because the zone was one of those hit hardest by the hurricane. Agriculture needed help — not just technical assistance, but also financing to help producers buy supplies and restart their farming and ranching activities.

In 2003, the program received support from the Local Development Fund (FDL) of Nicaragua. The idea was to reorganize the way the institution works. From 2003 to 2008, the institution had a series of internal processes which led to a change in the legal structure. It ceased to be a credit program, and became a private financial development organization, or OPDF, as they’re known in Honduras. This gives us a different legal framework, which lets the institution grow.

Currently, the institution has 5,350 clients, 47% of which are women. We also have a portfolio of $4.3 million. The institution is very connected to rural lending. 67% of our portfolio goes to farming and ranching. And like the rest of the institutions that work in rural areas, we think it’s important to empower the development of productive activities, especially knowing that, here in Honduras, agricultural production is one of the biggest contributors to the national economy, and especially the local economy. We find ourselves in one of the most distant zones in the country, where most people are rural and work in agriculture. Most of them really don’t have any other access to financing. So, through financing, we help them carry out their economic activities in a better way. This contributes to improving their families’ incomes, and in turn, improves their education and health, and lets them take advantage of business opportunities in the zone, even if they are seasonal, not permanent. Credisol is oriented toward contributing to the improvement of the quality of life of our clients.

I want to thank WCCN for its support and trust, and for financing this new stage of Credisol. You are our first credit providers as an OPDF. It’s an important achievement to have your support. Especially now, as we’re beginning a new stage, and there are processes that aren’t well-defined or complete. It’s important for us to have the support of WCCN, because that allows our institution to grow, to be able to continue supporting our clients, and to build the internal strength of the institution.

I think our expectation is to continue the relationship between the two organizations, and for it to grow stronger. Also, for the communication to continue to be fluid and very clear. As an institution, I think we have the challenge of proving to you that we will move forward, that we will keep growing with the same level of commitment and quality that we’ve shown so far. There are always challenges in an atmosphere that’s obviously dynamic, where there are social, political and economic changes, but I think as long as the two institutions remain close, it will be easier to overcome any difficulties that come along.

Introduction by Susan Frisbie
Development and Marketing Director