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The 68th APRACA Executive Committee Meeting and Regional Policy Forum on “Financial Services and Poverty Reduction” Held in Beijing

Sponsored by the Asia Pacific Rural and Agricultural Credit Association (APRACA) and organized by Agricultural Development Bank of China (ADBC), the 68th APRACA Executive Committee Meeting and Regional Policy Forum on “Financial Services and Poverty Reduction” kicked off on June 6, 2017 in Beijing. 59 representatives of the APRACA Executive Committee from 15 countries and 3 international organizations attended the event. ADBC Chairman Xie Xuezhi participated in the meeting and delivered a welcome speech. Sudha Shrestha, Deputy Director of Nepal Rastra Bank and Vice President of APRACA delivered an opening speech. Relevant leaders from the State Council Leading Group Office of Poverty Alleviation and Development, People’s Bank of China, China Banking Regulatory Commission, and ADBC, as well as experts from APRACA attended and addressed the meeting. All participants had extensive and lively discussions on issues such as further strengthening exchanges and cooperation among agricultural financial institutions in the Asia-Pacific region and enhancing the role of financial institutions in the poverty reduction strategies of various countries.

The meeting noted that it is the common wish of people all over the world to eradicate poverty and improve people’s livelihood. According to the UN Millennium Development Goals Report 2015, the world’s extremely poor population dropped from 1.9 billion in 1990 to 836 million in 2015, and China contributed 70% to the reduction. Since the inception of the reform and opening up, the Chinese government attaches great importance to poverty reduction, successfully lifting more than 700 million rural poor out of poverty. From 1978 to 2010, China accounted for 93.3% of the reduction in global poor population. However, more than 800 million people in the world today are still living below the extreme poverty line. Poverty alleviation has a long way to go, and financial poverty alleviation will be a long-term and systematic project. Therefore, countries around the globe should improve stability of their poverty reduction efforts and direct financial capital to supporting industrial development and cultivating market players in impoverished areas, so as to boost endogenous growth in such areas; they should attach extra importance to human potential, improve the working skills and self-development capacity of the poor, make school education affordable to children in poor areas, and block the intergenerational transmission of poverty; they should step up efforts to optimize the external environment, strengthen policy support, and improve financial institutions’ motivation and capability to serve poverty reduction; and they should further promote exchanges and cooperation among nations and institutions to jointly push ahead the cause of poverty reduction.

The participants held that finance, the core of modern economy, is not only an important driving force for economic and social development, but also an important guarantee for poverty eradication, livelihood improvement and gradual realization of common prosperity. Policy finance gives priority to social benefits, implements preferential policies, plays a leading role, and makes up for market failures. It is its mission to serve impoverished areas and vulnerable groups, and it has certain conditions and advantages to do so. As the only agricultural policy bank in China, ADBC adheres to a “three-in-one” strategic positioning, that is, executing the state will, serving the needs of “agriculture, rural areas and farmers” and following the law of banking. In recent years, the bank has earnestly implemented the national strategies for targeted poverty alleviation and elimination, placed strategic importance on serving poverty elimination and formed a pattern of bank-wide engagement in the poverty alleviation cause. To this end, the bank has required that the net lending for targeted poverty alleviation should account for at least 60% of its total net lending, and 80% in provinces tasked with achieving concrete poverty elimination goals. Focusing on registered poor households, 839 poverty-stricken counties and the 14 contiguous poverty-stricken areas, the bank sticks to the principle of aiming at targeted recipients, implementing targeted policies, allocating resources in a targeted manner and achieving targeted results. The bank implements preferential policies for poverty alleviation loans, such as priority lending, increased lending scale, discounted interest rates, extended loan maturity, and lower thresholds. The bank also actively seeks policy support, improves its lending mechanism, and strengthens risk prevention and control, in order to ensure the availability, controllability and sustainability of the poverty alleviation funds. As of the end of 2016, ADBC’s balance of targeted poverty alleviation loans stood at RMB901.2 billion, an indication of the bank’s leading role in financial poverty alleviation.

APRACA is a regional international organization established in 1977 with the support of UNFAO. It consists of organizations and groups directly engaged in agricultural credit or indirectly promoting rural financial development in the Asia-Pacific region. Its secretariat is located in Bangkok, Thailand. APRACA has been committed to strengthening cooperation among agricultural financial institutions among countries in the Asia-Pacific region and promoting the development of rural financial undertakings in the region. Since its founding, APRACA has played an important role in promoting agricultural and rural development and reducing poverty. At present, APRACA has 74 members from 21 countries.

ADBC Chairman Xie Xuezhi delivers a welcome address.

Sudha Shrestha, Deputy Director of Nepal Rastra Bank and Vice President of APRACA, delivers an opening speech.

Ji Zhihong, Director of PBOC Financial Market Department, addresses the meeting.

Matteo Marchisio, Country Programme Manager at International Fund for Agricultural Development, addresses the meeting.

Yin Jiuyong, Vice President of ADBC, delivers a keynote speech entitled “Exploiting the Role of Policy Banks to Provide Strong Support for Poverty Alleviation”.

APRACA Secretary General Dr. Prasun Kumar Das gives a speech of appreciation.

Morteza Shahidzadeh, Chairman & Managing Director of Agriculture Bank of Iran delivers a speech entitled “The Role of Financial Services in Poverty Reduction in Iran”.

Wu Hua, Deputy Director of the Development Guidance Department, State Council Leading Group Office of Poverty Alleviation and Development, delivers a speech entitled “New Progress in China’s Poverty Reduction”.

Bao Jian’an, Vice President of ADBC, delivers a speech entitled “Best Practices of China’s Financial Poverty Alleviation - Scenarios and Cases”.

S. M. Moniruzzaman, Deputy Governor of Bangladesh Bank, delivers a speech entitled “Best Practices of Financial Services in South Asia - Scenarios and Cases”.

Participants are engaged in discussions.

68th APRACA Executive Committee Meeting

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