{"id":169101,"date":"2026-06-10T03:00:21","date_gmt":"2026-06-10T01:00:21","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=169101"},"modified":"2026-06-09T10:14:33","modified_gmt":"2026-06-09T08:14:33","slug":"la-ue-implementa-el-mecanismo-para-palestina-con-395-millones-de-dolares-para-bancos-locales-y-21-millones-de-euros-en-asistencia-tecnica","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/la-ue-implementa-el-mecanismo-para-palestina-con-395-millones-de-dolares-para-bancos-locales-y-21-millones-de-euros-en-asistencia-tecnica\/","title":{"rendered":"The EU is implementing the mechanism for Palestine, providing $395 million for local banks and \u20ac2.1 million in technical assistance"},"content":{"rendered":"

The EIB and the European Commission are launching the implementation of the \u20ac400 million financing facility, initially announced in October 2025, through the signing of sub-lending agreements for SMEs between the Palestinian Monetary Authority (PMA) and the Bank of Palestine for $150 million, Quds Bank for $100 million, the Palestine Investment Bank for $70 million, the National Bank for $50 million and the Cairo Amman Bank for $25 million.\u00a0<\/span><\/p>\n

\"bandera<\/p>\n

These agreements make up to $395 million available to support Palestinian micro, small and medium-sized enterprises (MSMEs) through local financial intermediaries. The package also includes the deployment of the remaining \u20ac2.1 million in technical assistance, within a total budget of \u20ac3.5 million, of which \u20ac1.4 million has already been deployed, to strengthen the overall ecosystem of Palestinian micro, small and medium-sized enterprises through direct support to MSMEs, as well as to financial institutions and sectoral initiatives.<\/span><\/p>\n

Through collaboration with the PMA and local partner banks, the implementation of this mechanism will help to expand access to affordable finance for Palestinian businesses that continue to face severe economic difficulties in the context of the current conflict. This initiative will help channel much-needed liquidity to micro, small and medium-sized enterprises (MSMEs), sustain business activity and employment, and strengthen economic resilience.<\/span><\/p>\n

This operation, with a budget of \u20ac400 million, forms part of the \u201cEuropean Commission\u2019s Multi-Annual Comprehensive Programme for Palestinian Recovery and<\/span>Resilience\u201d, with a total budget of up to \u20ac1.6 billion for the period 2025\u20132027, which includes around \u20ac620 million in grants to support the Palestinian Authority and around \u20ac576 million for projects that, when conditions allow, promote recovery and resilience in the West Bank, East Jerusalem and Gaza.<\/span><\/p>\n

\u201cPalestinian businesses need reliable access to finance to be able to continue operating, investing and safeguarding livelihoods under extremely difficult conditions,\u201d said <\/span>EIB Vice-President Gelsomina Vigliotti<\/span><\/strong>. \u201cWith these agreements, we are launching the \u20ac400 million facility announced in October 2025 and making up to \u20ac395 million available through local partner banks to support Palestinian SMEs where funding is most needed. At the same time, \u20ac3.5 million in technical assistance will help to strengthen the sector at multiple levels.\u201d<\/span><\/p>\n

The Deputy Governor of the Palestinian Monetary Authority, Mohammad<\/span><\/strong>Manasrah, <\/span><\/strong>stated: \u201cThe implementation of this $395 million package represents a concrete step towards strengthening the Palestinian financial sector\u2019s capacity to support businesses during a period of exceptional hardship. Through five sub-loans to local banks \u2014 part of which is structured as subordinated debt to strengthen the banks\u2019 capital base \u2014 and whilst the funds are earmarked exclusively for financing micro, small and medium-sized enterprises, this cooperation will expand access to finance across Palestine, enabling businesses to continue operating, adapt to difficult conditions and sustain economic activity. The Palestinian Monetary Authority values its collaboration with the European Investment Bank and local financial institutions to promote this channel of support, where it can make a significant difference to businesses, families and communities.\u201d<\/span><\/p>\n

The Acting Director-General of the European Commission\u2019s Directorate-General for the Middle East, North Africa and the Gulf, Michael Karnitschnig,<\/span><\/strong> said: \u201cThe EU\u2019s \u20ac400 million Facility for Palestine is delivering results. By channelling \u20ac395 million through local banks and providing \u20ac2.1 million in technical assistance, we are making vital funding directly available to Palestinian businesses. This is not just a \u20ac1 million investment in businesses; it is a \u20ac1 million investment in jobs, resilience and the future of millions of Palestinians.\u201d<\/span>\u00a0<\/em><\/p>\n

Since 1995, the EIB has provided financing worth around \u20ac1 billion in Palestine, as well as risk-sharing instruments to support Palestinian small and medium-sized enterprises (SMEs) for an additional \u20ac120 million. The EIB has long been working with local financial institutions and public sector partners to improve access to finance, support essential infrastructure and strengthen economic resilience in Palestine.<\/span><\/p>\n

Background information<\/span><\/h3>\n

The EU and Palestine<\/span><\/strong><\/p>\n

The EU is a long-standing partner of the Palestinian people and advocates a two-state solution, where Israelis and Palestinians live together in peace and security. It has demonstrated its support both politically and financially. Supporting strong and viable governance by the Palestinian Authority is essential to achieving sustainable and lasting peace, both for the Palestinian people and for the region as a whole.\u00a0\u00a0<\/span><\/p>\n

In April 2025, the Commission adopted a<\/span>\u20ac1.6 billion Comprehensive Multi-Annual Programme to support Palestine\u2019s recovery and resilience<\/span>, covering the next three years. The programme is currently being implemented. Since October 2023, EU commitments have amounted to nearly \u20ac740 million in grants and loans.<\/span><\/p>\n

The EIB Group\u00a0<\/span><\/strong><\/p>\n

The European Investment Bank (<\/span>EIB<\/span><\/span>)<\/span>Group<\/span>is the financial arm of the European Union, owned by the 27 Member States, and one of the world\u2019s largest multilateral development banks. In 2025, the EIB Group signed agreements worth \u20ac100 billion in new financing and advisory services for more than 870<\/span>high-impact projects <\/span><\/span>across<\/span>eight key priorities <\/span><\/span>that support<\/span>the EU\u2019s policy objectives: <\/span><\/span>Climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships, and the savings and investment union. In addition to long-term loans for major infrastructure projects, the EIB Group drives private investment in high-risk innovative projects and companies, playing an increasingly important role in European markets for risk debt, venture capital, guarantees and securitisation.<\/span><\/p>\n

The European Investment Fund (<\/span>EIF<\/span><\/span>) is the EIB Group\u2019s subsidiary specialising in providing guarantees and capital to improve access to finance for small and medium-sized enterprises and start-ups across Europe. As a lead investor, through its extensive network of partner banks and investment funds, the EIF mobilises private investment and drives the venture capital ecosystem to support innovative European entrepreneurs.<\/span><\/p>\n

EIB Global<\/span><\/strong><\/p>\n

EIB Global <\/span><\/span>is the EIB Group\u2019s specialised arm dedicated to increasing the impact of mutually beneficial international partnerships and development finance, and a key partner of<\/span>Team Europe <\/span>and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, businesses and institutions through its<\/span>offices around the world.<\/span><\/span><\/p>\n

The EIB and Palestine<\/span><\/strong><\/p>\n

The EIB has been operating in Palestine since 1995 with investments totalling \u20ac1.15 billion and, over the years, has helped to improve infrastructure and boost economic development. It is the only European multilateral financial institution authorised to grant sovereign loans to the Palestinian Authority, focusing on infrastructure such as water and energy. The EIB also leads support for micro, small and medium-sized enterprises in Palestine through a \u20ac700 million financing package, complemented by risk-sharing instruments and advisory services.\u00a0\u00a0<\/span><\/p>\n

About the Palestinian Monetary Authority<\/span><\/strong><\/p>\n

The Palestinian Monetary Authority (PMA) is the independent central institution responsible for regulating and supervising the Palestinian banking and financial sector. Since its establishment in 1994, the PMA has worked to safeguard financial stability, promote economic growth and ensure the soundness of the Palestinian financial system. As a modern and resilient central bank without a national currency, the PMA manages payment systems, supervises financial institutions and develops inclusive policies to facilitate access to finance for individuals and businesses. The PMA plays a key role in strengthening Palestine\u2019s economic resilience by fostering a secure, transparent and competitive financial environment that meets the needs of households and businesses in the West Bank and Gaza.<\/span><\/p>\n

\u00a0Allocate \u20ac2.1 million to technical assistance.<\/span><\/strong><\/h4>\n