Danone Offers CNY20 Million To Create Microcredit Project In China

July 30, 2008 | Print | Email Email | Comments | Category: Business & Society

Danone will offer CNY20 million to set up a microcredit project in cooperation with the State Council Leading Group Office of Poverty Alleviation and Development and the Grameen Trust.

According to the agreement the three parties, Danone will offer CNY20 million to CPAD's subsidiary China Foundation for Poverty Alleviation over 10 years. CFPA will work with the Grameen Trust to set up a special fund offering small loans to farmers and small business owners in poverty-stricken areas.

Professor Muhammad Yunus, founder of the Grameen Trust, said the trust would do its best to help people in earthquake affected areas. He added that they were honored that they could contribute to the reconstruction work in the earthquake-stricken areas in China and he hoped that they could share their experience in microcredit with China through this project. He also thanked Danone Group for their initiative in raising money to help affected families.

The president of Danone China, Qin Peng, said that Danone had revised its management philosophy about 40 years ago, creating a corporate culture focusing both on commercial goals and social goals. He added that the Danone Group is very supportive of the poverty alleviation and development policy of China, and would continue to participate in various poverty alleviation measures such as microcredit projects.

Cooperation between Danone and Grameen Bank dates back to 2006, when the two established a joint venture in Bangladesh to practice the "Social Business" model which aims to improve social and environmental values.

Microcredit offers small loans to poor families. Grameen Trust, the sister agency of Grameen Bank, was founded by Professor Muhammad Yunus, promoting Grameen Bank Replication Program worldwide. Till now, Grameen Trust has offered loans to more than five million people in 39 countries including China.

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