- EIB Vice President Vigliotti and PIB Chairman Dayeh agree new support for EUR 19 million investment by Palestinian business
- Latest cooperation follows USD 20 million business financing agreed in 2021
- New support to help strengthen resilience of Palestinian economy and back investment in agriculture, manufacturing, services trade, heal and education
The European Investment Bank (EIB) and Palestine Investment Bank (PIB) will further strengthen targeted business financing to help Palestinian businesses expand business activity and create new jobs.
The new cooperation formally agreed in Ramallah today is designed to specifically support entrepreneurs and small businesses who face challenges accessing finance due to a lack of collateral and enhance access to business finance in a range of currencies
The new European Investment Bank initiative will enable the Palestine Investment Bank to provide EUR 19 million of new financing to entrepreneurs and business through 19 local offices.
The high-impact business financing cooperation, backed by the European Union, complements, and enhances the USD 20 million EIB credit line, to support Palestinian SMEs most impacted by the COVID-19 pandemic, provided through PIB agreed in 2021.
The first ever EIB portfolio guarantee business financing cooperation with Palestine Investment Bank was formally agreed at the headquarter of the Palestine Investment Bank in Ramallah by Gelsomina Vigliotti, European Investment Bank Vice President and Abed Dayeh, Chairman of Board of Directors of Palestine Investment Bank.
“Palestine Investment Bank is committed to enhancing investment by Palestinian business. This new and timely support from the European Investment Bank and the European Union will help to address investment gaps and strengthen resilience to global economic, inflation and energy shocks and unique local challenges.” said Abed Dayeh, Chairman of Board Of Directors of Palestine Investment Bank.
“The European Investment Bank supports high-impact business investment in cooperation with leading local financing partners across the Middle East and around the world. The latest business financing cooperation with the Palestine Investment Bank will unlock EUR 19 million loans to strengthen business investment by Palestinian companies across key sectors and allow small local business to upgrade activity, create jobs and invest in skills. This high-impact initiative demonstrates the shared commitment of the European Investment Bank the European Union and Palestine Investment Bank to strengthen economic resilience and increase access to finance for SMEs to better tackle economic challenges.” said Gelsomina Vigliotti, European Investment Bank Vice President.
“The European Union recognises the crucial need to strengthen economic resilience and increase access to business finance in Palestine. This new dedicated business financing arrangement, backed by the European Union, European Investment Bank and Palestine Investment Bank, will unlock much needed private sector investment and contributes to more economic self-reliance, prosperity and welfare in Palestine.” said Sven Kühn von Burgsdorff, European Union Representative.
Under the new initiative the European Investment Bank will provide a guarantee to business loans provided by the Palestine Investment Bank.
The new initiative is supported by the European Union’s European Fund for Sustainable Development , through the SME Access to Finance Initiative.
Over the last 28 years the European Investment Bank has backed more than EUR 490 million of new investment by thousands of Palestinian businesses.
Background information
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
