EIB Backs Palestinian Startups With a $50 Million Line of Credit to Bank of Palestine
The European Investment Bank (EIB) and Bank of Palestine join forces to support the resilience of the Palestinian private sector with a $50 million line of credit made available to Bank of Palestine to be on-lent to local private businesses with a focus on small and medium-sized enterprises (SMEs).
The operation is a part of Team Europe’s overall response to the Covid-19 crisis, which aims to support sustainable social and economic recovery of the region. It also falls under the EU-EIB Economic Resilience Initiative (ERI), which amongst its primary objectives, intends to promote private sector development through the support to SMEs as key players for generating economic growth and employment opportunities in Palestine.
Flavia Palanza, Director of the Neighbouring Countries Department, commented on the signature of the new financing agreement, “Our new line of credit comes at a time when SMEs need strong support to overcome the challenges and the shortfall of liquidity created by the Covid-19 pandemic. SMEs are most vulnerable to the impact of this global crisis. We are proud of our partnership with the Bank of Palestine and the tangible impact that our project will have on people’s lives in the country. ”