EBRD boosts small business and trade in West Bank and Gaza

Strengthening small and medium-sized enterprises (SMEs) and promoting international trade in West Bank and Gaza, the EBRD is providing an SME credit line of US$ 5 million to The National Bank (TNB), in addition to a US$ 1 million trade facility under the EBRD’s Trade Facilitation Programme (TFP).

The ceremony took place at the Palestine Monetary Authority (PMA) in Ramallah in the presence of the PMA Governor, Azzam Shawwa, and TNB Chairman, Talal Nasereddin. The agreement was signed by EBRD Director for the Eastern Mediterranean region, Heike Harmgart and the General Manager of TNB, Ahmad Hajhasan.

The private sector represents a substantial segment of the local economy. This new EBRD investment is the third in the West Bank and Gaza and will contribute to the creation of more jobs as well as the development of the private sector.

PMA Governor Azzam Shawwa praised the signing of the agreement noting its importance for the needs of the local economy and supporting the SME sector, which represents more than 95 per cent of the Palestinian economy. “The agreement will help achieve sustainability in this sector, create more job opportunities, accelerate the development process, and enhance financial inclusion in Palestine,” he said.

“By creating a US$1 million trade facility, the agreement will help open new markets for national projects, contributing to the activation of the Palestinian economy. We thank EBRD for its initiatives to increase its investments in Palestine and its continuous efforts to support the banking sector and the Palestinian economy in general,” he added.

Heike Harmgart said: “We are very pleased to be launching our third investment in the West Bank and Gaza and our second supporting the Palestinian banking sector. This investment with TNB is crucial in increasing access to finance for SMEs in all economic sectors as well as supporting trade finance activities for local companies.”

Under the trade facility, TNB will become an issuing bank and receive the EBRD’s trade finance guarantees to support the import and export activities of local companies. The EBRD expects the participation of local companies from a wide spectrum of sectors such as manufacturing, agribusiness, infrastructure as well as other segments of the local economy.

A technical assistance package, financed by the EBRD’s West Bank and Gaza Trust Fund, will help strengthen TNB’s SME lending policies and also offer advanced trade finance training courses.

Original source: EBRD
Published on 8 November 2018