Palestine: EIB and FATEN support microfinance with USD 10 million
- Oct 21, 2019
The EIB and the Palestinian Company for Credit and Development (FATEN) have signed a USD 10 million loan agreement to finance self-employed individuals, sole proprietors and micro entrepreneurs in Palestine[1]. The EIB financing will support several thousand beneficiaries.
The European Investment Bank (EIB) and the Palestinian Company for Credit and Development (FATEN) have signed a USD 10 million loan agreement to finance self-employed individuals, sole proprietors and micro entrepreneurs in Palestine[1]. The EIB financing will support several thousand beneficiaries.
Commenting on the new agreement, EIB Vice-President Dario Scannapieco said: “Giving micro-entrepreneurs an opportunity to work and generate income is important for improving the resilience of the overall economy. This new EIB loan to FATEN confirms the EIB’s commitment to support financial inclusion and entrepreneurship.”
FATEN’s CEO Anwar Jayyosi commented: “Since its establishment, FATEN has financed thousands of micro and small businesses, helping people to develop and sustain their own projects, improving the Palestinian economy in the process. This new EIB loan will help FATEN to achieve its vision of comprehensive financial inclusion by supporting small and micro-entrepreneurs.”
FATEN was established in 1998 as a not-for profit private shareholding company registered with the Palestinian Ministry of Economy and licensed by the Palestinian Monetary Authority in 2014. FATEN’s market share today is 41%, with 37 branches spread throughout the country and an outstanding portfolio of USD 100 million. It covers more than 500 different sites, especially refugee camps, rural areas and marginalised communities, with a staff of 310 employees and more than 33,200 active borrowers, of which 31.56% are women.
The financing agreement was signed under the Southern Neighbourhood Microfinance Facility (SNMF) – a EUR 71.3 million lending facility which supports investments in microfinance markets in the Southern Neighbourhood countries. The facility blends the EIB’s own resources with the European Commission resources under the Neighbourhood Investment Facility.
[1] This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.