Bank of Palestine (BOP) is the leading bank in the banking sector in the Palestinian Autonomous Territories, with a market share of 31%, USD 6.5bn of assets and a gross loan portfolio of USD 3.7bn in 2021. BOP is a major player in the local financial system. The bank has strong fundamentals (management quality, competitive position, operational and financial results) and is very active in areas in line with AFD Group’s strategic objectives: financial inclusion, SME financing and green finance.
The guarantee allocated is the fifth portfolio guarantee with BOP. With the MENA facility, in addition to the standard ARIZ coverage, AFD Group offers a performance bonus whose payment is conditional on the achievement of predefined impact objectives. The aim is to encourage the bank to target segments underserved by the banking sector: green MSMEs and start-ups set up within the last three years, MSMEs owned by women or young people (under 25) and MSMEs operating in the agriculture, health, education, tourism and digital sectors.
The MENA facility, launched in 2021 with support from the European Union, supports SMEs in the Mediterranean region.
The project should support:
- 810 jobs
- 70 MSMEs
- The USD equivalent of EUR 22.5m of investments in the private sector.
This project is carried out with the support of the European Union
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union.
This information is given at the time of signature, without prejudice to any developments in the operation/project
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News
SignatureProparco and the European Union support Bank of Palestine in financing high impact SMEs
Published on 13 February 2023 -
on the same region
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on the same topic
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on the same financial tool
