Commission and EIB support Palestine’s economic resilience with €400 million facility for local businesses

September 25, 2025 by European Union Leave a Comment

A person standing on a hillside, holding a Palestinian flag aloft while looking over a town in the background under a cloudy sky. — (Credit: Unsplash)

This article is brought to you in association with the European Commission.

Financing is part of the European Commission’s Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience, aiming to boost economic stability and job creation.
EIB facility to strengthen Palestinian local micro, small, and medium-sized enterprises by improving access to affordable financing.
Partnership with the Palestine Monetary Authority and local financial intermediaries to channel resources to private sector.

After the approval of the European Investment Bank (EIB)’s Board in July, today, the EIB and the Commission have announced at the UN General Assembly in New York the signature of a €400 million financing facility with the Palestine Monetary Authority (PMA) to support the economic recovery and resilience of the Palestinian private sector. The operation is structured as an intermediated facility through PMA and local financial institutions and is intended to improve access to finance for micro, small and medium-sized enterprises and Mid-Caps, which form the backbone of the Palestinian economy.

The initiative aims to foster stability and inclusive growth by providing long-term, affordable financial resources to enterprises that have been significantly affected by the ongoing conflict. The EIB financing will be channelled through local partner banks and microfinance institutions, enabling them to offer loans at favourable terms to eligible businesses.

The facility is a key component of the European Commission’s “Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience”. With a total envelope of up to €1.6 billion over 2025–2027, the programme includes €620 million in grants to support the Palestinian Authority, €580 million for concrete projects fostering resilience and recovery in the West Bank and Gaza (when conditions allow), and the EIB’s Facility of €400 million loan guaranteed by the European Commission supporting the Palestinian private sector.

Since 1995, the EIB has provided financing worth some €1 billion in Palestine, as well as risk sharing instruments supporting Palestinian small and medium-sized businesses for an additional €120 million. Just last year, in the middle of the conflict, the EIB disbursed $192 million to the Palestinian Monetary Authority and €40 million to Bank of Palestine, and signed a loan of €20 million for the construction of a waste-water treatment plant in Ramallah.

Background

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

About the Palestine Monetary Authority

The Palestine 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. Acting as a modern and resilient central bank without a national currency, the PMA manages payment systems, oversees financial institutions, and develops inclusive policies to enhance access to finance for individuals and businesses. The PMA plays a vital role in supporting Palestine’s economic resilience by fostering a safe, transparent, and competitive financial environment that serves the needs of households and enterprises across the West Bank and Gaza.

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