In a press release, Standard Chartered’s China division announced that they will provide the China Foundation for Poverty Alleviation (CFPA), a China-based non-profit organization, with a local currency loan facility of 20 million Yuan, equivalent to over 2.75 million USD. According to the press release, this credit will be used to “finance the Microfinance projects aiming to provide financial support to farmers and owners of micro-enterprises in ten counties of seven provinces in China…” This will be the first loan facility by an international bank to a Microfinance Institution (MFI) in China.
The Standard Chartered Group of London, England, was created in 1969 through the merging of the Standard Bank of British South Africa with the Chartered Bank of India, Australia and China. It is an international retail and wholesale bank focusing on emerging markets. As of 2006, it had USD 266 billion in total assets, USD 249 billion in total liabilities and USD 17 billion in total equity and derived over 90 percent of its profits from Asia, Africa and the Middle East. This credit comes as part of the bank’s commitment to the Clinton Global Initiative (CGI) to provide USD 500 million in credit and financial instruments to finance MFIs in Africa and Asia.
The China Foundation for Poverty Alleviation (CFPA) of China, founded in 1989 is a non-governmental organization. It started its microfinance program in 1996 and as of 2006, its total assets surpassed the equivalent USD 4.7 million. Its total loan portfolio surpassed 3.5 million USD, its return-on-assets was -0.28 percent and its debt-to-equity ratio was 21.59 percent.
By Jacob Keller
Additional Resources:
Standard Chartered Group: Home, press release, 90 percent
China Foundation for Poverty Alleviation (CFPA) Home
Bloomberg Currency Calculator: Home
Clinton Global Initiative: Home, bank’s commitment
Shareholder.com: Home, USD 266 billion, USD 249 billion, USD 17 billion
MIX Market: Home, USD 4.7 million, -0.28 percent, 21.59 percent
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