OREANDA-NEWS. February 07, 2013. Agricultural Bank of China Limited (ABC) recently was awarded  the "Strategic Partner" of  the China Foundation for Poverty Alleviation (CFPA) for its outstanding contribution in 2012 to China’s poverty alleviation campaign, reported the press-centre of ABC.

Over an extended period of time, ABC has actively supported development of micro-finance programs for poverty alleviation. By delivering wholesale loans to CFPA, the biggest domestic public welfare organization in poverty alleviation, ABC strongly supports its pilot micro-finance projects to the impoverished. These loans are recognized as both a model and innovative program of ABC in supporting Sannong (agriculture, farmers and rural areas) and tailoring financial services for poor rural households. ABC's efforts have been  recognized by key leaders of the State Council. By the end of 2012, ABC has provided CFPA with credit funds of RMB 260 million with unique features of simplified collateral requirements and preferential interest rates. ABC has supported CFPA to serve more than 7 million rural households in over 16,000 administrative villages.

Most pilot micro-finance projects for poverty alleviation target poor counties and disaster-stricken counties. Since credit funds are delivered directly to rural households, the projects have a major impact on poverty alleviation. In 2012, ABC became the clear leader in this area among all financial institutions when it funded a pilot micro-finance project for poverty alleviation by delivering loans with the lowest interest rates and the most preferential conditions.This pilot micro-finance project for poverty alleviation continues to develop rapidly. By the end of December 2012, 63 local offices had been opened, 11 more than at the beginning of the year.Loans worth RMB1.36 billion were delivered, RMB290 million more than the previous year, achieving an outstanding loan portfolio of RMB860 million. The entire program, covering 7.71 million rural households in 17,000 administrative villages, proceeds smoothly and productively.

Sources from CFPA state that ABC strongly and consistently supports its poverty alleviation project as CFPA transitions into a fund-raising and multinational organization.This cooperation between ABC and CFPA is an innovative attempt by large commercial banks to deliver credit loans to poor rural households.As such, it sets a model example in leading the way to deepen financial reform and service in China's rural areas.