BAKU, Azerbaijan, April 10. The European Bank for Reconstruction and Development (EBRD) is providing a financing package of $3 million (2.9 million euros) to Palestine for Credit and Development (FATEN), the largest microfinance institution in the West Bank and Gaza, Trend reports.
This package includes a $2 million loan for micro, small, and medium-sized enterprises (MSMEs) and a $1 million loan to support women-led businesses under the EBRD’s Women in Business (WiB) programme.
The WiB facility will be supported by a 20% first-loss risk cover funded by the European Union through its Initiative for Financial Inclusion programme. This will help ensure continued lending to women entrepreneurs.
FATEN is a key partner for the EBRD in supporting MSMEs in the West Bank, especially those in underserved sectors, such as women-led businesses. The loans are intended to help these businesses maintain operations, expand, and contribute to the region’s sustainable development amid the ongoing economic challenges.
The MSME loan will also be accompanied by a technical cooperation package, funded by the EU-EBRD Sustainable Growth4All Programme, aimed at enhancing FATEN’s digital lending capabilities.
FATEN, established in 1999 and licensed by the Palestine Monetary Authority in 2014, is the largest microfinance institution in the West Bank and Gaza. With 34 branches, it serves nearly 24,000 borrowers, holding a 53% market share in the region.
Since its involvement in the region began in 2017, the EBRD has approved 31 projects totaling 160 million euros.