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West Bank VSEs to benefit from $3 million in loans



           


Thanks to EBRD and Faten, Palestinian small businesses will be able to benefit from advantageous loans (photo: EBRD)
Thanks to EBRD and Faten, Palestinian small businesses will be able to benefit from advantageous loans (photo: EBRD)
PALESTINE. The European Bank for Development and Reconstruction (EBRD) on Thursday 24 September 2020 granted a $3m (€2.57m) loan to Faten (Palestine for Credit and Development). With this sum, the Palestinian microfinance institution will be able to increase its support to micro, small and medium-sized enterprises (mpme) in the Palestinian territories. The loans will go to local private SMEs in the West Bank and particularly to those in the agro-industrial sector.

Based in Ramallah, Faten (310 employees) offers loans from $4,000 to $100,000.

"The private sector represents an important segment of the local economy, but access to finance for Palestinian small businesses remains limited and is currently much needed to mitigate the economic impact of the coronavirus crisis," says an EBRD statement.

At the same time, Faten will benefit from a technical assistance programme funded by the EBRD Trust Fund for the West Bank and Gaza Strip and the Netherlands. The programme will strengthen the EBRD's expertise in risk management and anti-money laundering.

Faten is a private non-profit company established in 1999 and since May 2014 it has been licensed and controlled by the Palestinian Monetary Authority (PMA). The microfinance institution is the largest in the West Bank and Gaza with a market share of 39%.

 


Eric Apim


Thursday, September 24th 2020



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