To support small projects, Bank of Palestine signs an agreement worth 65 million

Ramallah Ma'an - Following the announcement of the deal to invest in Bank of Palestine shares with the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), Bank of Palestine signed an agreement to support and provide financing worth 65 million US dollars with a coalition that includes the International Finance Corporation (IFC), PROPARCO - the investment arm of the French Development Agency, and the "SANAD" Fund for financing micro, small and medium enterprises. The agreement comes at a time when the Palestinian economy is facing recession due to the war on Gaza, which has affected many economic sectors, especially the small and medium-sized enterprises sector, which is the most affected by the current economic challenges. This sector represents the backbone of the Palestinian economy, and constitutes 90% of economic activity in Palestine. In response to the requirements of empowering this sector, the three international financial institutions have taken t he initiative to form an alliance aimed at providing additional liquidity to enhance and support SME programs during the current period, in addition to the recovery phase of the Palestinian economy. Through this alliance, the International Finance Corporation is contributing $35 million ($25 million from its own account, in addition to co-financing including a $6.5 million loan from the International Finance Corporation's Global Financing Program for SMEs, and a $3.5 million loan from the International Finance Corporation's Private Sector Development Program in the Middle East and North Africa). Meanwhile, Proparco of France will contribute $20 million, and the Sanad Fund $10 million. 'As long-standing partners of Bank of Palestine, we are proud to stand by the Palestinian economy and are confident that this agreement will achieve its ambitious and important goal of helping Palestinian SMEs survive the current downturn and participate effectively in the upcoming economic recovery phase,' said Francoise Lomba rd, CEO of Proparco. Through its contribution to this alliance, SANAD continues to demonstrate its tangible commitment to empowering SMEs and enhancing the inclusive financial landscape in the Middle East and North Africa. 'Supporting SMEs is vital to achieving economic stability and growth, especially during challenging times,' explained Dr. Daniela Buckman, Chairperson of SANAD. 'SANAD's contribution underscores our commitment to strengthening the inclusive financial system and empowering small businesses in Palestine. We believe this partnership will contribute to making a significant positive difference and supporting economic recovery efforts in the region,' she added. For his part, Hashim Shawa, Chairman of the Board of Directors of Bank of Palestine Group, said: 'We affirm the bank's continued support for financing the small and medium enterprises sector, emphasizing its commitment to contributing to the prosperity of this sector and its customers and beneficiaries. We believe that this agreement, in partnership with this international coalition that includes the International Finance Corporation, Proparco, and the Sanad Fund, aims to enhance the ability to continue providing the necessary support to this vital economic sector. We realize that enhancing the ability of this sector to continue will contribute to enabling the real economy to recover, recover, and grow.' Shawa added: 'We are grateful to work in partnership with development finance institutions that have quickly unified their efforts and created this tool to support small and medium enterprises in record time, and during a very critical period facing the Palestinian economy.' About the World Bank Group The World Bank Group has long served the Palestinian people in the West Bank and Gaza to provide them with a dignified life and better opportunities. In the current humanitarian emergency in Gaza, the World Bank Group is working with development partners to provide critical services, including food, water, and essential medical supplies. World Bank Group programs also provide essential services such as education, health care, and municipal services to the people of the West Bank. The International Finance Corporation, the private sector arm of the World Bank Group, continues to support businesses, enterprises, and small businesses to maintain jobs and financial services to support the economy. The World Bank Group's programs aim to meet the urgent needs of the people of the West Bank and Gaza and help the Palestinian territories recover. About the "Sanad" Fund The SANAD Fund for Micro, Small and Medium Enterprises (MSME) - a fund working in partnership with Finance in Motion - finances micro, small and medium enterprises (MSMEs) and low-income households in the Middle East and North Africa (MENA) and some Sub-Saharan African countries through its partners from accredited financial institutions in those countries. SANAD aims to promote economic development and job creation, including youth employment opportunities, and support agriculture, afforda ble housing, innovation and financial technologies. SANAD strives to achieve its objectives by providing financing for lending and equity financing to its local partners. The Sanad Technical Assistance Program (SANAD TAF), managed by Finance in Motion, works to multiply the Fund's impact and expand its reach through capacity building with partner institutions, developing financial infrastructure in accordance with the principles of responsible finance, and conducting various research and development. The Sanad Entrepreneurship Academy, one of the initiatives of the Sanad Technical Assistance Program, offers a package of support programs for business owners in all regions targeted by the Fund. The Academy works with leading local organizations to incubate and accelerate projects, in order to help entrepreneurs by providing guidance, resources, mentorship, networking opportunities, the opportunity to obtain funding support, and other tools necessary to transform creative ideas into successful projects. The li st of investors in the 'SANAD' Fund includes: the German Development Bank (KfW), which established the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; the Swiss State Secretariat for Economic Affairs (SECO); the Austrian Development Bank (OeEB); the German GLS Bank and the GLS Treuhand Foundation; the Dutch Development Bank FMO; and Calvert Impact Capital. For more information about the Sanad Fund for financing micro, small and medium enterprises, please visit: http://www.sanad.lu About Finance in Motion Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The firm structures, manages and advises impact investment funds that bring together public and private investors to address climate change, support biodiversity conservation, promote sustainable use of natural resources, improve livelihoods and enhance economic opportunities. About Proparco Proparco, a subsid iary of the French Development Agency, has been working with the private sector for more than 45 years to create a more just and sustainable world. Proparco works closely with its partners through an international network of 23 local offices to find sustainable solutions that respond to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco harnesses sector expertise and a wide range of financial solutions tailored to the different stages of business development, thanks to its Digital Africa and Propulse technical support programmes aimed at scaling up the impact and performance of its partners. Through its new strategy 'Working together for greater impact' for the years 2023-2027, Proparco contributes to enabling, strengthening and expanding the different mechanisms through which it works with its partners. To learn more: http://www.proparco.fr/en/strategy, and you can visit: http://www.proparco.fr/en and @Proparco and LinkedIn About Bank of Palestine Bank of Pale stine was established in 1960 and is headquartered in Ramallah. Bank of Palestine is a commercial bank listed on the Palestine Stock Exchange and is subject to the supervision and instructions of the Palestine Monetary Authority. It is the first and largest national bank among 13 financial institutions operating in Palestine, with total assets of $7.126 billion and a market share exceeding one-third of the Palestinian banking sector in terms of customer deposits and credit facilities. The Bank has a leading banking network of 101 branches spread across Palestine, providing services to more than one million customers including individuals, companies, small and medium-sized enterprises and public sector institutions, through a diverse and wide range of distinguished banking services, such as retail banking, corporate banking, digital and mobile banking services, in addition to subsidiary activities and programs. The Bank also plays a leading role in lending to small and medium-sized enterprises, and is a major contributor to promoting financial inclusion, sustainability and entrepreneurship in Palestine. For more information, please visit the website, LinkedIn, Instagram, Facebook and YouTube. Source: Maan News Agency