ACCION Microcredit China: China's Second Foreign-Funded Microcredity Company!

After several years in the making, Accion has finally opened the 2nd foreign-funded microcredit company in China! Located in Chifeng Prefecture of Inner Mongolia, Accion Microcredit China (AMC) was inaugurated on March 4, 2010 and as of early December 2009 has already begun distributing loans. PlaNet Finance China is delighted to hear of AMC's opening and the addition of another mission-driven microfinance organization into China's microfinance landscape. All of us working in the sector have been impressed with Accions determination and perserverance in pursuing their goals in Inner Mongolia. Congratulations to Accion!

Accion Launches Microfinance Operations in Inner Mongolia

Boston, United States, March, 04 2010 - ACCION® International, a pioneer and leader in global microfinance, announced today that it has inaugurated ACCION Microcredit China (AMC) in Chifeng Prefecture, Inner Mongolia, to deliver financial services to the region's working poor. AMC officially opened its doors in early December, and is already making microloans to local entrepreneurs.

ACCION Microcredit China is the first foreign-funded microcredit company in Inner Mongolia, and only the second foreign-funded microcredit company in China. It is also the first microfinance institution in which ACCION has taken a majority share.

Microlending in the world's most populous country remains nascent, at best, hindered by the withdrawal of the country's largest banks from rural areas, and exacerbated by a challenging regulatory environment. In Inner Mongolia, 40 percent of the population remains below the poverty line. While the Chinese economy has seen unprecedented growth in recent years, income inequality between the country's coastal regions and interior provinces is escalating, with an urban dweller's income now three times greater than that of his rural counterpart. Microcredit provided by nonprofits such as ACCION provides an important avenue of support for the country's small entrepreneurs.

AMC has been established to test and adapt ACCION's expertise in individual lending methodologies to the unique needs of Chinese microentrepreneurs. Over the next five years, ACCION Microcredit China is expected to provide working-capital and fixed-asset loans for thousands of urban and rural, small and medium-sized enterprises in Chifeng. Loan amounts start at 1,000 RMB (US$ 150).

"We are very excited to help launch the microfinance industry in China," said Michael Schlein, President and CEO of ACCION. "Our new operations in Chifeng demonstrate ACCION's commitment to enter some of the world's most challenging and underserved regions, to help bring financial access to people most in need."

http://www.accion.org/Page.aspx?pid=1951