CGCCD

completed

_x000C_Chengdu Small Enterprise Credit Guarantee Company Limited (Chengdu CGC) was established in 2001 with a mandate of helping SMEs access finance. Chengdu CGC was initially funded by Chengdu municipal government and UK government through a donation. The State Secretariat for Economic Affairs of Switzerland (SECO) took an equity stake in Chengdu CGC in 2004. The IFC has been providing technical assistance and other training programs to Chengdu CGC since 2002. CGC’s main business is to provide partial guarantee on loans extended by local banks to SMEs in Chengdu metropolitan area. Its target clients are those who otherwise meet banks’ lending criteria but are unable to provide sufficient collateral as normally required by local banks. Over the past six years, CGC has provided loan guarantees amounting to RMB6.2 billion ($887 million), creating or maintaining employments for at least 60,000 people. At present, the company has about 780 SME clients and more than 1000 individual clients (e.g., unincorporated small businesses). The purpose of the project is to help SMEs in the greater Chengdu metropolitan area get much needed financing to restore and/or expand their production and operation capacity in the aftermath of recent earthquake in Sichuan Province, China. Three satellite cities in Chengdu metropolitan area, Dujiangyan, Pengzhou and Chongzhou, were among the hardest hit cities by the earthquake.