EBRD and FATEN support Palestinian MSMEs and women-led businesses

The European Bank for Reconstruction and Development is extending a financing package of US$ 3 million (€2.9 million) to Palestine for Credit and Development (FATEN), the largest microfinance institution in the West Bank and Gaza. The package will include a US$ 2 million loan for on-lending to micro, small and medium-sized enterprises (MSMEs) and a US$ 1 million loan to support women-led businesses under the EBRD’s Women in Business (WiB) programme.

The WiB facility will be accompanied by a 20 per cent first-loss risk cover funded by the European Union through its Initiative for Financial Inclusion programme, to support steady on-lending to women entrepreneurs.

FATEN is a key partner of the EBRD in supporting on-lending to private MSMEs in the West Bank, particularly in the most underserved segments of the economy, including women-led businesses. The loans aim to empower MSMEs and women-led businesses to sustain their operations, grow their enterprises and contribute to sustainable development, at a time of acute economic crisis in the region.

The MSME loan will be accompanied with a technical cooperation package, funded by the EU-EBRD Sustainable Growth4All Programme, to support FATEN in enhancing its digital lending capabilities and upgrading its internal digital tools.

Commenting on the finance package, FATEN General Manager Anwar Jayosi said: “Signing this new loan marks a significant milestone for FATEN’s partnership with the EBRD. This partnership not only strengthens our commitment to empowering small and medium-sized enterprises, but also provides them with the financial resources they need to grow, create jobs and contribute to the local economy. We are excited about this collaboration and look forward to continuing our mission of supporting sustainable economic development for Palestinian businesses.”

Matteo Patrone, the EBRD’s Vice President for Banking, said: “We are pleased to support FATEN with an MSME loan and a Women in Business facility as part of our ongoing efforts to promote sustainable growth and financial inclusion in the West Bank abd Gaza. By empowering MSMEs, we are helping to unlock new opportunities, drive innovation and create jobs. This partnership is a testament to our shared commitment to strengthening the local economy and fostering long-term prosperity.”

FATEN was established in its current form in 1999 as a private non-profit company. In 2014, it was licensed by the Palestine Monetary Authority and is currently operating under its supervision. FATEN is the largest microfinance institution in the West Bank and Gaza with market share of 53 per cent. It runs its operations through 34 branches, serving nearly 24,000 borrowers.

Since the start of the EBRD’s operations in the West Bank and Gaza in 2017, the Bank has approved 31 projects worth a total of €160 million.