MICROCAPITAL BRIEF: Palestinian Monetary Authority, European Investment Bank (EIB) Announce $63m Package for MSMEs in Gaza Adjusting to COVID-19 Pandemic, with Focus on Companies Run by Women, Youth

The EU’s European Investment Bank (EIB) recently announced it will disburse EUR 60 million (USD 63 million) to the Palestinian Monetary Authority (PMA), with USD 50 million of the total to be on-lent by retail lenders in Gaza to micro-, small and medium-sized enterprises (MSMEs). The remainder of the funding will take the form of guarantees and grants for related technical assistance. The goals include to help: (1) Gazan businesses create new jobs as they adjust to the COVID-19 pandemic and rising energy costs; and (2) reach underserved sectors of the economy such as female and youth entrepreneurs.

PMA is a public institution intended to foster economic growth and stability, as well as institute banking and monetary policy in Palestine. It was established in 1994 and oversees 13 banks that hold approximately USD 20 billion in assets as of 2022.

EIB was founded in 1958 and works to further the EU’s interests around the world by providing technical assistance, loans for large-scale projects and financial guarantees. EIB is funded by the members of the EU and as of 2022 has about EUR 248 billion (USD 262 billion) in subscribed capital.

By Ben Greissman, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2022-226-the-european-union-and-the-eib-announce-eur-60-million-business-investment-in-gaza-helping-with-its-economic-recovery-and-reconstruction-efforts

EU fact sheet on EIB
https://www.europarl.europa.eu/ftu/pdf/en/FTU_1.3.15.pdf

PMA fact sheet
https://www.pma.ps/en/AboutPMA//FactSheet

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.