EIB and FATEN Sign US$10M Deal to Support Micro Entrepreneurs in Palestine
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Palestine, October, 21 2019 - The European Investment Bank (EIB) and the Palestinian Company for Credit and Development (FATEN) have signed a USD 10 million-loan agreement to finance self-employed individuals, sole proprietors and micro-entrepreneurs in Palestine.
EIB financing will support several thousands of beneficiaries.
Commenting on the new agreement, EIB Vice-President Dario Scannapieco said: "Giving micro-entrepreneurs an opportunity to work and generate income is important for improving the resilience of the overall economy. The new EIB loan to FATEN confirms EIB's commitment to supporting financial inclusion and entrepreneurship."
FATEN's CEO, Anwar Jayyosi commented: "Since the establishment, FATEN financed thousands of micro and small businesses, helping people to develop and sustain their own projects, improving the Palestinian economy in the process. The new EIB loan will help FATEN to achieve its vision of comprehensive financial inclusion by supporting small and micro-entrepreneurs."
FATEN was established in 1998 as a non-for profit private Shareholding Company registered in the Palestinian Ministry of Economy and licensed by the Palestinian Monetary Authority in 2014. FATEN market share today is 41%, with 37 branches spread throughout the country and an outstanding portfolio of 100 Million USD. It covers more than 500 different sites especially the refugee camps, rural areas, and marginalized community, with a staff of 310 employees and more than 33,200 active borrowers of which 31.56% are women.
The financing agreement was signed under the Southern Neighborhood Microfinance Facility (SNMF) - a EUR 71.3 million lending facility which supports investments in microfinance markets in Southern Neighborhood countries. The facility blends EIB's own resources with the European Commission resources under the Neighborhood Investment Facility.