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- The EBRD provides US$ 8 million loan to Quds Bank under the Green Economy Financing Facility
- Up to US$ 2 million loan for on-lending to women-led businesses
- The financing is supported by the EU through technical assistance and investment grants
The European Bank for Reconstruction and Development (EBRD) is supporting the Palestinian private sector and households with a US$ 10 million financing package to Quds Bank (QB). The package consists of two facilities: a GEFF loan of US$ 8 million under the Green Economy Financing Facility (GEFF) Framework, and a Women in Business loan of up to US$ 2 million under the Women in Business Programme.
Under the European Union (EU)-funded Green Economy Financing Facility (GEFF) Framework, up to US$ 8 million will be on-lent to private sub-borrowers – micro, small and medium-sized enterprises (MSMEs) and residential sub-borrowers – in the West Bank, for investments in small-scale renewable energy, water-, energy- and resource-efficiency projects, including circular-economy projects, and to support relevant green technology supply chains.
This facility is supported by a comprehensive technical-capacity and investment-grant package funded by the EU through the EU-EBRD Sustainable Growth4All Programme. The package will include technical assistance to support the implementation of the programme as well as investment grants for MSME and residential sub-borrowers of up to 25 per cent of the sub-project investment cost.
A US$ 2 million Women in Business loan will be used for on-lending to eligible private women-led MSMEs based in the West Bank to increase the availability of long-term funding in these challenging times. Quds Bank will also receive an EU-funded technical assistance package to develop sustainable credit mechanisms, including financial products and lending practices that meet the specific needs of women-led MSMEs, as well as training for staff and marketing activities.
The EBRD’s Advice for Small Businesses programme will offer consultancy services to QB’s women sub-borrowers to help improve their competitiveness and business performance through advisory services, training, mentorship and coaching, as well as the adoption of digital technologies in their day-to-day business.
Commenting on the signing, EBRD Managing Director for Financial Institutions Francis Malige said: “We are pleased to be here in Ramallah today to launch the first GEFF loans with our partner financial institutions. Our partnership with Quds Bank marks the first green financing facility signed by the EBRD in the West Bank and will help promote sustainable energy and resource efficiency solutions for Palestinian businesses and households. Our Women in Business line will also support the Palestinian economy by providing financing to women-led firms, which remain underserved. With thanks to the EU, this package underscores our shared commitment to advancing a greener private sector in the region.”
Alexandre Stutzmann, EU Representative in Jerusalem, commented: “The European Union is proud to support the new Green Economy Financing Facility in partnership with the EBRD and Quds Bank. Through our funding of technical assistance and investment grants, we aim to empower local businesses to invest in greener and more sustainable solutions. This initiative demonstrates the EU’s broader commitment to fostering inclusive economic growth and enhancing environmental resilience in the Palestinian economy.”
QB Chief Executive Officer Mohammad Shawar said: “We are proud to see our partnership with the EBRD deepen further and to become the first bank in the West Bank to cooperate with the EBRD under the Green Economy Financing Facility. This agreement will enable us to offer greener and more sustainable financing solutions for businesses. The Women in Business loan will help us further support women-led MSMEs as we navigate through extremely challenging times. We would like to thank the EBRD for this support and thank the EU as well.”
Quds Bank is one of the leading financial institutions operating in the Palestinian market. It has been an EBRD client since 2019 and has played a crucial and active role in supporting the market. It is also among the most active banks in the region in utilising the EBRD’s trade finance lines and has won the “Most Active Issuing Bank in the West Bank and Gaza” award four times under the EBRD’s Trade Facilitation Programme.
Since the start of its operations in the West Bank and Gaza in 2017, the EBRD has approved 36 projects worth a total of €185.5 million.