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bank of palestine proaprco ifc smes
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Proparco provides Bank of Palestine with a senior debt up to USD 20 million, as part of a $65 million financing agreement with a consortium comprising the International Finance Corporation (IFC), and Sanad Fund for MSMEs, advised by Finance in Motion, in support of the Bank’s programs to support economic recovery in Palestine.

As the Palestinian economy suffers from the consequences of the war in Gaza and accrued tensions in the West Bank, these new credit lines will allow Bank of Palestine to continue providing much-needed liquidity to SMEs, which constitute the backbone of the Palestinian economy (85% of economic activity), and it will pave the way for an anticipated period of economic recovery.

Bank of Palestine (BOP) is the first banking group in Palestine and champions strong impact commitments aligned with the Sustainable Development Goals, from renewable energy to gender inclusive projects.

The partnership between BOP and AFD Group, which includes Proparco, spans a period of 12 years and includes several initiatives. This strategic relationship between Bank of Palestine and AFD represents a significant collaboration aimed at fostering economic development and enhancing financial services in Palestine.

Françoise Lombard, CEO of Proparco, said: “As a long-time partner of Bank of Palestine, Proparco is proud to stand once more by the Bank in these challenging times. We are confident that this credit line will achieve its ambitious yet crucial objective of helping Palestinian SMEs to withstand the current downturn and play a significant part in the coming economic recovery.”

Hashim Shawa, Chairman of the Bank of Palestine, said: “Bank of Palestine has championed the financing of the SME sector and remains committed to the well-being of this sector and its clients. The financing credit line by the international consortium of IFC, Proparco and Sanad is an important financing tool equipping the bank with liquidity and the long-term ability to provide needed financing for a vital economic sector. The health of this sector would enable the real economy to revive, recover and grow. We are thankful for this partnership with the DFIs that came together and in record time mobilized this financing tool at a very critical period facing the Palestinian economy.”