PlaNet Finance News
- 06-26-2007 - PlaNet Finance and the Harbin Commercial Bank (HCB) sign a three-year cooperation agreement for a downscaling project
Paris, 26 June 2007. PlaNet Finance, an International Charitable Organization specialized in developing microfinance around the world, signed a three-year cooperation agreement for a downscaling project with the Harbin Commercial Bank (HCB) of China.
The goal of the cooperation is to bring Harbin’s microfinance operation fully into line with international best practices. PlaNet Finance will send experts to work onsite in HCB to work on all aspects of microfinance delivery including microcredit policy, staff training, loan methodology and loan system development. By the end of three years of technical assistance, PlaNet Finance will have helped HCB establish world-class microfinance expertise tailored to China’s market needs.
The agreement, signed on June 11, 2007 in Beijing by PlaNet Finance President Jacques Attali and HCB Board Chairman Mr. Guo Zhiwen, builds on an earlier phase of diagnostic work.
HCB is a joint-stock commercial banking institution that has pioneered the issuing of small securitized loans for unemployed workers and has developed a microcredit business serving small companies, micro-enterprises and rural farming households. As of late June, HCB had loaned more than RMB 20 billion (roughly 2 billion Euros) to medium to small enterprises and had eased 60,000 urban unemployed people through their transition out of state employment; it also assisted about 210,000 rural households to expand or improve their agrarian production.
“PlaNet Finance is delighted to be working alongside Harbin Commercial Bank, an entity we consider to be a strong and highly motivated pioneer in the field of micro-credit delivery in China”, said Mr. Jacques Attali, President of PlaNet Finance.
PlaNet Finance is an international non-profit organization whose mission is to alleviate poverty by strengthening microfinance delivery mechanisms. It is based in Paris and currently has offices and programmes in more than 60 countries.
“We have been searching for the right technical partner for HCB’s microcredit department for a long time. Given PlaNet Finance’s track record of dedication to microfinance development internationally, we are convinced we are now working with the right organization”, explained Mr. Guo, Chairman of HCB Board.
The PlaNet Finance China office was established in Beijing in 2002. It liaises with PlaNet Finance’s international experts to tailor technical assistance programmes for Chinese banks and other operators in credit delivery to the unbanked. PlaNet Finance China’s activities focus on the creation, strengthening and upscaling of microfinance components within poverty alleviation projects targeting the extremely poor counties of China.
About PlaNet Finance :
PlaNet Finance is an International Charitable Organization, whose mission is to reduce world poverty by developing Microfinance. PlaNet Finance works with the private sector (banks, financial institutions), international organizations and governments so as to speed up the establishment of the Microfinance sector.
Based in Paris, PlaNet Finance operates in more than 60 countries with an international network of affiliated organizations in Europe (United Kingdom, Italy, Germany, Spain, Belgium, Portugal, Switzerland), North America (United States, Canada), Latin America (Mexico, Brazil, Argentina, Peru), Asia (India, Nepal, China, Japan), Africa (Senegal, Benin, Madagascar) and the Arab world (Morocco, Jordan, Palestinian Territories, Lebanon, Israel). http://www.planetfinance.org
Press Contacts for PlaNet Finance China
Gabrielle Harris,
Executive Director
Tel:86(10) 84408458/8468-18
Fax:86(10)84408478
Mobile:13901102781
gharris@planetfinance.org- 04-24-2007 - Five microfinance companies - the latest progress of the experiments
- • Shanxi Province
By the end of September 2006, two microfinance companies in Pingyao County have issued total loans of RMB 49,647,000 and have made profit of RMB 1,312,000 amounting to a total recover loan of RMB 12,500,000. The loan residue of RMB 37,097,000 has increased by RMB 4,169,500 (12.66%) compared to last month. 86% of the 779 loans belong to the loans to peasant households, with an average interest rate of 20.5% (highest being 23.3%, while lowest being 16.2%). The change of loan residue of both microfinance companies in Shanxi province since 2006 is shown as follows (Fig 1):
The loans are mainly used for purchasing rural transporting industry and agricultural machineries (RMB 20,174,500 – 54.38%). Other uses of the loan include: farm production (RMB 5,251,000 – 14.15 %), poultry raising (RMB 6,817,500 – 18.38%) and subsidiary agricultural products processing industry (RMB 4,854,000 – 13.08%).
There are four different loan periods: 3 months – RMB 3,790,500 (10.22%); 6 months – RMB 17,855,500 (48.13%); 9 months – RMB 2,785,000 (7.51%); 12 months – RMB 12,666,000 (34.14%).
Amongst all types of loan, secured loan is the most popular loan with RMB 23,112,000 (62.3%), followed by peasant household co-insurance loan (RMB 12,962,000 – 34.94%). Two other loan types include credit loan (RMB 663,500 – 1.79%) and collateral loan (RMB 359,500 – 0.97%).
• Sichuan Province
By the end of September 2006, the loan residue of Quan Li Microfinance Co., Ltd has amounted to RMB 6,853,800 with the highest loan interest rate of 23.4%, and an average of 20.2%. The change of loan residue each month since the establishment of the experimental microfinance companies in Sichuan is shown as follows (Fig 2):
The loans mainly target at peasant households and small-scale enterprises along the agricultural industry line. Amongst all types of loan, the trade loan is certainly the most popular type, with RMB 5,468,800 (79.79%). Other uses of loan include farm production and poultry raising (RMB 1,259,100 – 18.37%) and agricultural products processing industry (RMB 125,800 – 1.84%).
There are four different loan periods: 3 months – RMB 3,199,000 (46.68%); 6 months – RMB 1,365,700 (19.92%); 12 months – RMB 2,289,100 (33.4%).
Amongst all types of loan, credit loan with RMB 3,571,100 (52.1%) is ranked the most popular, followed by collateral loan (RMB 1,850,000 – 26.99%), co-insurance loan (RMB 802,600 – 1.71%) and secured loan (RMB 630,000 – 9.2%).
• Guizhou Province
By 30 September 2006, Huadi Microfinance Co., Ltd has issued loan amounting to RMB 375,500 (one RMB 50,000 worth of loan was issued in August). With a total recover loan of RMB 23,160,000, the loan residue of RMB 375,200 has increased more than 6 times compared to the beginning of month. Amongst the 22 loan households, 5 are peasant households (22.73%), 17 private businesses. The highest interest rate is 22.2%, while the lowest is 12%, resulting in an average of 17.9%.
The loan is mostly used for private business turnover loan of management (RMB 250,500 – 66.71%), other uses also include farm production loan residue (RMB 30,000 – 7.99%), poultry raising loan (RMB 45,000 – 11.98%) and agricultural products processing industry (RMB 50,000 – 13.32%).
There are four different loan periods: 3 months – RMB 78,000 (20.77%); 6 months – RMB 17,000 (4.53%); 12 months – RMB 280,500 (74.7%).
All loans were secured loan.
• Shaanxi Province
Opened on 18 September 2006, the two microfinance companies in Xi’an - Xin Chang and Da Yang Hui Xin issued on spot 5 loans to peasant households and micro enterprises, amounting to RMB 290,000 with the highest interest rate of 22.32%.
• Inner Mongolia Autonomous Zone
Established in Erdos on 10 December 2006, Inner Mongolia ‘Rong Feng Microfinance Company’ has issued 5 loans of a total RMB 450,000 with the highest interest of 22.32%, mainly used for poultry raising and private business turnover. - 03-03-2007 - PlaNet Finance China will develop new Community Technology Learning Centers (CTLCs)
- Through the cooperation with Microsoft (China) Co., Ltd, PlaNet Finance China will continue to further expand the development of the Unlimited Potential (UP) programs in 2007. To date, an agreement has been signed between PlaNet Finance China and the Rural Development Studies Center of Yunnan University. CTLCs will soon be established in Kunming targeting at the local migrant workers and low-incomers with free IT skill training courses; in addition, the program will gradually develop training curricula of public health, law and English, in order to improve their general aptitude. CTLC Kunming is still in the process of development, with the training courses starting around May.
CTLC Xiamen, of which PlaNet Finance China is in charge, has already started looking for local partners and will have completed the preparation for establishment by the end of April. By then, the range of the PlaNet Finance China CTLCs will have reached 7 cities. Each CTLC will provide service to the general public by utilizing its advantages and features to the full to accomplish the program targets. - 03-13-2007 - PlaNet Finance China in charge of Microsoft UP curricular development
- Through the establishment of Community Technology Learning Centers (CTLCs) in China, the Unlimited Potential (UP) program will initiate free IT skill training programs for migrant workers, the unemployed, the underprivileged and senior citizens, in order that more and more disadvantaged people who have not yet had the opportunity to gain access to information technology master the basic IT skills. Due to the lack of suitable computing curricula at the stage of the development, a set of standardized curricula is thus indispensable during the development for improving the quality of training from which everyone would soon benefit. The IT skill training curricula of which PlaNet Finance China is in charge – the Microsoft UP curricula Chinese adaptation has formed a team of richly experienced volunteers and project operating staff, who, having understood various demands for training curricula from each city program, will simplify and thus adapt the original courses to the targeted readers. The curricular adaptation has so far reached the second round of revision, and the textbook will officially be used at the end of March.