After the approval of the European Investment Bank (EIB)’s Board in July, today, the EIB and the European 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’s, €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.

EU Commissioner for the Mediterranean Dubravka Šuica said: “This significant EIB’s Facility of €400 million, guaranteed by the European Commission, represents our unwavering commitment to a resilient Palestinian economy, society and statehood. As part of our Multiannual and Comprehensive Programme for Palestinian Recovery and Resilience, this initiative will improve access to affordable financing for local businesses, directly contributing to economic stability and job creation.”