Chengdu, China, April 22, 2009—IFC,
a member of the World Bank Group, is providing a $15 million risk-sharing
facility to China’s Chengdu Small Enterprise Credit Guarantee Company
that will allow the company to help reconstruct earthquake-stricken Sichuan
province and restore people’s livelihoods by supporting small and medium
Chengdu CGC is a leading provider of guarantees for lending to SMEs in
Sichuan. The IFC facility, which is a follow-up to an equity investment
IFC made in the company last year, will enable partner banks, guaranteed
by Chengdu CGC, to grant as much as 5.4 billion Chinese renminbi ($790
million equivalent) in new loans to SMEs in earthquake-stricken areas over
the next eight years.
“This second collaboration with IFC demonstrates the trust built between
the two institutions and is a crucial boost for the SMEs given the added
challenge under the global economic crisis,” said Mao Junqiang, Chengdu
Beginning in October 2008, IFC initiated an advisory-services program to
expand the company’s capacity in risk management and internal control,
employee training, and product development. This program is one of
several funded by a special $1 million earthquake-recovery assistance program
established by IFC.
“The Sichuan Earthquake Recovery Program continues to be one of IFC’s
highest priorities in China, and Chengdu CGC has demonstrated its commitment
to supporting long-term sustainable business recovery and expansion,”
said Michael Ipson, IFC Country Manager for China and Mongolia. “This
initiative will make a difference in people’s lives, helping create jobs
and providing essential goods and services.”
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 per cent increase over the previous year.
For more information, visit www.ifc.org.
About the Chengdu Small Enterprises Credit Guarantee Company
Chengdu CGC was established in 2001. The company provides guarantees for
loans extended by local rural credit cooperatives and commercial banks
to SMEs in the greater Chengdu area. In 2008, CGC had total outstanding
guarantees of 3.1 billion renminbi and shareholder funds of 307 million
renminbi. For more information, visit www.cgccd.com.