JPMorgan was given the award for its commitment to support the microfinance program in Huai’an.

In a recent award ceremony, the China Foundation for Poverty Alleviation (CFPA) presented JPMorgan with its Annual Contribution Award for the Walk for Poverty Alleviation in China for 2007. Held at the Great Hall of the People,  JPMorgan was given the award for its commitment to support the microfinance program in Huai’an, in China’s Hebei Province.

Last month, JPMorgan pledged a contribution of $33,750 to support the microfinance program in Huai’an. Half of the funding will be used as a principal loan to farmers to support agricultural activities, raising livestock, as well as opening small businesses. The rest of the funding will be devoted to various training programs benefiting between 3,000 and 4,000 farmers. The program is expected to directly benefit 80 households with annual personal income below the national poverty line.

“Rural financing is now on top of the Chinese government’s agenda. Despite the government backing, there are still many places like Huai’an that require support from the corporate sector. We are very pleased to work with international financial institutions like JPMorgan whose generous support  has provided us with more capital, as well as global expertise in the banking and financial sectors,” said Liu Dongwen, director of CFPA Microfinance Department.

The ceremony was attended by senior government officials including Cheng Siwei, vice chairman of the Standing Committee of the National People’s Congress; Fan Xiaojian, director of State Council Leading Group Office of Poverty Alleviation and Development; and Duan Yingbi, president of the China Foundation for Poverty Alleviation, along with other dignitaries.

Established in 1989, CFPA has become one of the largest charitable organizations in China. Since its establishment, CFPA has launched more than 200 programs to reduce poverty. The microfinance division under CFPA is also one of the leaders in microfinance. It has not only provided rural residents with access to low interest capital but also offered various training programs that effectively empowered the Chinese farmers to become self-reliant and self-confident. A repayment ratio of nearly 100% has allowed CFPA to achieve its goal of sustainable operations in each location.