The European Investment Bank and the European Commission have launched the implementation of a €400 million financing facility by making up to $395 million available to Palestinian micro, small and medium-sized enterprises through local banks.
The money will be channelled via five banks under sub-loan agreements signed between the Palestine Monetary Authority and Bank of Palestine ($150 million), Quds Bank ($100 million), Palestine Investment Bank ($70 million), The National Bank ($50 million) and Cairo Amman Bank ($25 million), the Commission informed on Monday.
The funding is intended for micro, small and medium-sized enterprises (MSMEs) — a broad category covering smaller businesses — and will be delivered through local financial intermediaries.
A further €2.1 million in technical assistance is being deployed as part of a €3.5 million package, after €1.4 million had already been deployed
Wider EU programme
The €400 million operation is part of the European Commission’s “Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience”, which has a total envelope of up to €1.6 billion for 2025 to 2027.
That programme includes around €620 million in grants to support the Palestinian Authority and around €576 million for projects in the West Bank, East Jerusalem and Gaza “when conditions allow”, according to the same statement.
The EIB has provided about €1 billion in financing in Palestine since 1995, as well as risk-sharing instruments supporting Palestinian small and medium-sized businesses for an additional €120 million.
