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Proparco is supporting the main microfinance institution (MFI) in Palestine
Project
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Signature date
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Location
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Palestine
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Financing tool
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Financing amount (Euro)
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7218262
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Financing details
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USD 8m loan
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Customer
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Palestine for Credit and Development (FATEN)
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Type of customer
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Microfinance
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Country of headquarters
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Palestine
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Project number
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PPS1006
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is supporting the Palestine for Credit and Development Company (FATEN) via a loan agreement to finance self-employed people, individual entrepreneurs and microentrepreneurs in Palestine. Proparco’s financing should support over 2,000 beneficiaries in the Palestinian Autonomous Territories.
Client presentation
FATEN, which was set up in 1998 by the NGO Save the Children, serves populations in the West Bank and Gaza where there is a low level of financial inclusion. FATEN is the leading microfinance institution in Palestine, both in terms of portfolio volume and the number of clients served. Indeed, it serves over 31,000 clients, 32% of them women, via a network of 37 branches, including 10 in Gaza.
The MFI benefits from in-depth knowledge of its market segment. The institution has a highly professional and visionary management team allowing it to carry out its social mission, which is central to its strategy.
Project description
The project involves the allocation of a USD 8m senior credit line to the Palestinian microfinance institution (MFI) FATEN to support the development of its loan portfolio.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
We estimate that Proparco’s support for FATEN’s growth should help:
- Create or maintain 600 jobs at FATEN and with its clients, with 45% of jobs for women at the MFI (attention given to gender issues in monitoring the company’s performance, maternity leave).
- Develop the growth of FATEN’s activity with Palestinian microentrepreneurs, with the allocation of some 2,750 additional microcredits (including 33.3% to women) thanks to Proparco’s commitment.