EIB & EU Launch €400M Facility to Boost Palestinian Private Sector
The European Investment Bank (EIB) and the European Commission have launched a €400 million facility to boost the Palestinian private sector. This initiative aims to bolster economic recovery and resilience by providing affordable financing to micro, small, and medium-sized enterprises (MSMEs) and Mid-Caps. The operation is part of the European Commission's Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience, with a total budget of up to €1.6 billion over 2025-2027.
The facility is structured as an intermediated scheme, channeled through the Palestinian Monetary Authority (PMA) and local financial institutions. This approach ensures resources reach private sector enterprises directly. The programme includes €620 million in grants to support the Palestinian Authority and €580 million for concrete projects fostering resilience and recovery in the West Bank and Gaza, provided conditions allow. The EIB's €400 million loan, guaranteed by the European Commission, is a significant portion of this support for the Palestinian private sector.
The EIB will provide funding through local partner banks and microfinance institutions, such as those in Palestine via the PMA and local financial partners. This will enable eligible SMEs and midcap companies to access loans on favorable terms, thereby stimulating economic growth and job creation.
The €400 million financing facility, signed by the European Commission, the EIB, and the PMA, is set to strengthen the Palestinian private sector. By improving access to affordable financing, the initiative aims to enhance economic recovery and resilience, contributing to the overall €1.6 billion programme for Palestinian recovery and resilience.
