EBRD and FATEN to empower Palestinian entrepreneurs
US$ 3 million loan to largest microfinance provider
The European Bank for Reconstruction and Development is strengthening micro, small and medium-sized enterprises (MSMEs) in the West Bank and Gaza, with a US$ 3 million loan to Palestine for Credit and Development (FATEN), the largest non-profit microfinance institution in the West Bank and Gaza.
The private sector represents a substantial segment of the local economy but access to finance for Palestinian small businesses remains limited and is much needed currently to mitigate the economic impact of the coronavirus crisis.
The EBRD loan will help FATEN to increase funding to local, private MSMEs in the West Bank with a focus on those operating in the agribusiness sector.
A technical assistance package, financed by the EBRD’s West Bank and Gaza Trust Fund with support from the Netherlands, will help FATEN to strengthen its skill-sets in risk management, and combatting anti-money laundering.
Established in 1999 as a private non-profit company, FATEN became licensed and monitored by the Palestine Monetary Authority in 2014, and is the largest microfinance institution in the West Bank and Gaza with a market share of 39 per cent.
In 2017, the EBRD started investing in the West Bank and Gaza. To date, five projects have been signed for a total amount of US$ 19 million.