The European Investment Bank (EIB), a financial arm of the European Union (EU), announced Thursday it provides €60 billion ($62.58 billion) for economic development in Gaza.
The EIB released a press statement saying that Gelsomina Vigliotti (Vice President EIB) and Sven Kuhn von Burgsdorff (EU representative) unveiled the financing program while they were visiting Gaza.
The EU Representative and Vice President of the EIB stated that the first financial support package for Gaza includes loans, grants, and guarantees. They also mentioned that the Palestine Financial Sustainability Program was created in conjunction with the Palestine Monetary Authority in order to increase access to finance, strengthen economic resilience, and share financial best practices.
According to the press release, the new financing will help Gazan businesses recover from recent crises including COVID-19. It is part of the first ever credit facility of such size offered by EIB to a Palestinian public organization.
The financing will be channeled through Palestine’s flagship economic recovery program called ‘Estidama’ by the Palestine Monetary Authority (PMA).
The PMA has been instrumental to promoting sustainable economic growth through this fund. With the support of the EU, the EIB and current funding, the PMA will significantly expand its activities in Gaza.
Portfolio guarantees, incentive programs, and technical assistance will help to make Gaza a more inclusive financial market. They will increase access to finance for those in need, such as women-led businesses, start-ups, and businesses in the most affected by the COVID-19 epidemic.
“Improving access to finance by entrepreneurs and businesses here in Gaza is crucial to create jobs, strengthen economic resilience and increase private sector investment. The new cooperation between the Palestine Monetary Authority, the European Investment Bank and the European Union will transform investment, unlock dedicated financing for young entrepreneurs and help local companies to harness new business opportunities,” said PMA representative Dr. Rafat Al Araj.
“The European Investment Bank, the EU Bank, is committed to supporting private sector investment here in Gaza, improving access to finance by entrepreneurs by backing new credit lines with local banks and unlocking investment to enhance economic resilience. Businesses and entrepreneurs in Gaza will benefit from USD 50 million new financing and a dedicated €13 million support package under the Palestine Financial Sustainability Program. This represents the first dedicated European Investment Bank support for Gaza business investment.” said Vice President of the European Investment Bank Gelsomina Vigliotti.
“Gaza has been through difficult times recently, experiencing the economic fall-out of COVID, the hostilities in May last year and rapidly increasing food, energy prices now. The initiative we present today will support economic recovery and reconstruction efforts across the Gaza Strip,” said the EU representative Sven Kühn von Burgsdorff.
“It will help expand much needed financing for investments by Gazan businesses and create job opportunities for its people, he said underlining however that the sustainability of Gazan recovery is not only an economic endeavor, it must be backed by an accompanying political process and dialogue.
The ‘Palestine Financial Sustainability Program’ is a joint undertaking of the EU, EIB and PMA, which aims to increase the financing available for the private sector in order to enhance competitiveness, promote business expansion and enable MSMEs to modernize their businesses. The Program’s primary objective is to increase access to finance for MSMEs in Palestine, with a special focus on Gaza.
Source: north africa post
