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EBRD lends US$ 5 million to Vitas Palestine for on-lending to underserved economic segments in the West Bank
EU provides 20 per cent first loss risk cover to maintain Vitas’ consistent on-lending to MSMEs
EU-funded technical assistance through the EU-EBRD Sustainable Growth4All Programme to help Vitas develop a five-year strategic plan
The European Bank for Reconstruction and Development (EBRD) is increasing its support for micro, small and medium-sized enterprises (MSMEs) in the West Bank, issuing a US$ 5 million (€4.5 million) loan to Vitas Palestine, the second-largest microfinance institution in the West Bank and Gaza.
This financing facility will be used for on-lending to MSMEs based in the West Bank – including female entrepreneurs and borrowers in rural areas – amid the unprecedented challenges of current times. The World Bank estimates that the real GDP of the West Bank and Gaza will decline by 17 per cent year on year in 2024.
The loan is accompanied by 20 per cent first loss risk cover funded by the European Union under its Financial Inclusion Programme to support Vitas Palestine’s on-lending to the most underserved MSMEs in the economy.
EU-funded technical assistance will also be provided through the EU-EBRD Sustainable Growth4All Programme to help Vitas with the development of a five-year strategic plan.
Founded in 2013 as a for-profit microfinance institution, Vitas Palestine became licensed and monitored by the Palestine Monetary Authority in 2015 and is the second-largest microfinance institution in the West Bank and Gaza, serving nearly 19,000 borrowers.
Since the start of its operations in the West Bank and Gaza in 2017, the EBRD has approved 30 private-sector projects in the West Bank, with its investment totalling €157.4 million. |
