Signing of a loan agreement worth 400 million euros to support private sector projects in Palestine

SadaNews - The Governor of the Palestinian Monetary Authority, Yahya al-Shanar, and the Vice President of the European Investment Bank, Ambroise Fayolle, signed a loan agreement worth 400 million euros on the sidelines of the United Nations General Assembly meetings in New York, in the presence of the European Union Commissioner for the Mediterranean, and Palestine's Permanent Representative to the United Nations, Dr. Riyad Mansour. The loan aims to support the recovery of the Palestinian private sector and enhance its resilience amid difficult economic conditions. This agreement comes within the framework of a strategic partnership between the Monetary Authority, the European Investment Bank, and financial intermediaries to direct financing to the Palestinian private sector, especially micro, small, and medium enterprises, which are the backbone of the national economy. This financing will be channeled through banks to enable micro, small, and medium enterprises, as well as medium-capital companies, to access loans under favorable conditions, as they are a fundamental pillar of the national economy and a main source of job creation. This agreement falls within the European Commission's comprehensive, multi-year program to enhance recovery and resilience in Palestine, with total allocations of 1.6 billion euros for the period 2025–2027. In this context, the Governor of the Monetary Authority, Mr. Yahya al-Shanar, confirmed that the agreement comes at a critical time when the Palestinian private sector faces unprecedented challenges. He explained that expanding access to facilitated financing will enable local companies to maintain jobs, contribute to sustainable growth, and enhance their resilience, noting that the Monetary Authority takes pride in its partnership with the European Investment Bank and other financial institutions to ensure that these resources are accessible to support economic stability and stimulate hope for a better future. For her part, Nadia Calvino, president of the European Investment Bank, stated: "Economic and financial stability in Palestine is a priority for the European Union and is part of our commitment to a lasting and sustainable peace based on a two-state solution. This agreement reflects the support of the European Investment Bank Group for the Palestinian people and Palestinian businesses suffering from the impacts of the conflict, and it aligns perfectly with the EU's position on ending this war immediately." Dubravka Suica, EU Commissioner for the Mediterranean, also mentioned that these facilities represent a steadfast commitment from the EU to build a resilient Palestinian economy and a capable society, emphasizing that improving access to facilitated financing for local companies directly contributes to economic stability and creates new job opportunities. In this regard, Gelsomina Flioti, Vice President of the European Investment Bank, clarified that limited access to financial services poses a significant challenge for Palestinian companies at present, affirming that the new facilities will support the ability of the local financial sector to provide targeted and appropriate loans, which will contribute to revitalizing the private sector, maintaining jobs, and contributing to economic development.