National Bank and European Bank for Reconstruction and Development Sign Two Agreements for Green and Trade Financing Packages Worth 7 Million USD

SadaNews - The National Bank and the European Bank for Reconstruction and Development have signed two agreements worth 7 million USD, which include a green financing package of 5 million USD under the Green Economy Financing Program (GEFF), in addition to a 2 million USD trade financing line to support Palestinian imports and exports.

The green financing will be allocated to support micro, small and medium enterprises (MSMEs) and individuals to invest in renewable energy sources, rationalize energy and water consumption, enhance energy efficiency and resource utilization, and adopt circular economy practices. Borrowers will also benefit from investment incentives of up to 25% of the project value, in addition to a package of technical support to be provided by the European Union to enhance the capabilities of the bank's staff and borrowers. Meanwhile, the trade financing line will be dedicated to addressing the needs of Palestinian exporters and importers by providing pre-export and import guarantees and distributing goods in the West Bank.

In his speech during the press conference that followed the signing, the CEO of the National Bank, Salameh Khalil, stated that the National Bank is proud to be among the first Palestinian banks to partner with the European Bank for Reconstruction and Development under the green financing program, pointing out that this agreement reflects the bank’s commitment to supporting the transition to a sustainable economy and encouraging clients to invest in environmentally friendly projects.

Khalil added, "Palestine is currently experiencing a severe liquidity crisis, and this partnership will surely contribute to alleviating the economic impact of war by supporting micro, small, and medium enterprises, which are the backbone of the Palestinian economy, in addition to supporting trade and reviving the local economy."

Khalil emphasized that this partnership with the European Bank for Reconstruction and Development serves as new certification for the National Bank regarding its commitment to the global standards required by international institutions and as evidence of the soundness and strength of the bank's financial situation and its risk management standards, having passed all due diligence checks in all fields. Khalil thanked the European Union for its role in this partnership in providing the necessary technical support to ensure the success of this partnership and the sustainability of the projects that will be financed, whether through strengthening the capabilities of the bank's staff or providing necessary consultations to the borrowers.

For his part, Francis Malij, Managing Director of Financial Institutions at the European Bank for Reconstruction and Development, stated, "We are pleased to be in Ramallah today to launch the first loans of the green financing program in partnership with Palestinian banks. Our cooperation with the National Bank will contribute to enhancing sustainable energy solutions and efficient resource use for businesses in the West Bank. Through this package, we reaffirm our shared commitment with the European Union to support a more sustainable private sector in the region."

It is worth mentioning that this partnership between the National Bank and the European Bank for Reconstruction and Development is not the first between the two banks; rather, the two banks collaborated in 2018 and 2020 to support micro, small, and medium enterprises and foreign trade worth 6 million USD and 10 million USD, respectively.