A senior official yesterday praised the participation of
non-government organizations in poverty alleviation, especially for
farmers.
"NGOs have been more active, professional and efficient in
broadening financing channels for poor farmers," said Gao Hongbin,
deputy director of the State Council Leading Group Office of
Poverty Alleviation and Development in Beijing.
The director gave high credit to the NGOs' micro-finance
projects in collaboration with financial institutions.
"It is a good beginning," Gao said at the signing ceremony of
the 100 million yuan (US$12.7 million) loan contract between the
China Development Bank and China Foundation For Poverty
Alleviation.
"The cooperation is a healthy and sustainable model for the
capital thirsty poor farmers," Gao said
The newly-raised funds will go to poor farmers in four counties,
Fujian, Shanxi and Liaoning provinces. They will receive a loan of
20 million yuan (US$2.5 million).
This year, the foundation's micro-finance projects have covered
10 counties in seven provinces. More than 150 million yuan (US$18.9
million) was loaned to 330,000 rural poor households.
Its repayment rate has remained high.
The ratio of portfolio at risk over a 30-day period is only 0.1
percent, much lower than the international standard of 3
percent.
Money for the fund, for the first time, has been secured from
banks with interest.
Previously, the fund was supported by donations at zero
interest.
The foundation, the first NGO in China to carry out
micro-financing for poverty alleviation, has previously contributed
160 million yuan (US$20 million) annually.
Shortage of capital has been a problem for the foundation in its
10 years' development.
"The total loan for each pilot county is no more than 5 million
yuan (US$630,000)," said Wang Xingzui, executive director of the
foundation.
"The amount cannot meet the demand of the poor farmers, not to
mention the sustainable development of the micro-finance system,"
he said.
With back-up from the commercial banks and a more flexible model
developed by the NGOs, the micro-finance project may be able to
achieve a better sustainable development, Gao said.
Nationwide, NGOs with speciality in poverty alleviation have
grown as more urban well-off dwellers have raised their awareness
in volunteer work, Gao said.
But compared with western countries, China's NGOs are still too
few, he said.
With about 21 million people in rural China living below the
poverty line, more efforts from the NGOs are needed, Gao said.
(China Daily December 21, 2006)