The European Investment Bank and EU Commission announced at the UN General Assembly the signing of a €400 million financing facility with the Palestine Monetary Authority to support economic recovery and resilience of the Palestinian private sector.
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.
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.
Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience
