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Financial policy effective in poverty relief

(chinadaily.com.cn) 2018-07-30 Print Mail Share

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Residents receive dividends. [Photo/xixianxinqu.gov.cn]

A second round of dividends totaling 23,400 yuan ($3,463) was disbursed on July 3 to residents participating in Jinghe New City's new industrial development model.

The new city, located in Xixian New Area, Northwest China's Shaanxi province, recently began experimenting with a development model in which banks grant small discount loans to poor households and then funnel the money into enterprises. In this way, enterprises can obtain enough funds to operate while the poor can receive an income boost through additional dividends.

"The model is designed to reduce poverty and is critical for building a well-off society," said Zhang Gechao, deputy general manager of a tea company.

Jiao Shaofei, deputy director of the Financial Office of Xixian New Area, pointed out that "The financial assistance program in Jinghe can effectively alleviate financial problems for enterprises and poor households while also injecting vigor into market entities."

The new city will continue to encourage private enterprises to participate in the program and help in the ongoing fight against poverty.