EBRD STRENGTHENS MSMEs IN GAZA

The European Bank for Reconstruction and Development (EBRD) is strengthening micro, small and medium-sized enterprises (MSMEs) and promoting international trade in the West Bank and Gaza, with a US$ 10 million financial package to Quds Bank.

MSMEs are at the core of the Palestinian economy, representing more than 98 percent of the local market. Exacerbated by the coronavirus pandemic, insufficient access to funding remains a constraint on the growth of many small businesses.

The package includes a credit line of up to US$ 5 million for MSMEs and corporates, providing them with vital liquidity to help mitigate the impact of the COVID-19 pandemic. This credit line will help Quds Bank to provide short-term loans to businesses facing liquidity constraints due to a decrease in their activities and turnover.

In addition, the EBRD will continue to support exporters and importers in the West Bank and Gaza by providing a US $5 million increase in Quds Bank’s existing trade finance limit under the EBRD’s Trade Facilitation Programme (TFP). The financing will help Quds Bank to diversify its trade finance business, increase available limits and offer longer maturities to its customers.

Launched in 1999, the TFP aims to promote foreign trade to, from, and among the economies in which the EBRD invests.

Through the program, the Bank provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers, and distributors.

In 2020 the program supported the financing of foreign trade totaling more than €3.3 billion – a record annual volume. This financing included a response to the pandemic through the facilitation of more than 80 transactions involving trade in medicines, medical supplies, medical equipment, and personal protection products for a total volume of almost €60 million.

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