EBRD and The National Bank promote green and trade financing in the Palestinian economy

• The EBRD provides US$ 5 million loan under the Green Economy Financing Facility to The National Bank (TNB)
• The facility will benefit from EU-funded technical assistance for TNB as well as investment grants benefiting sub-borrowers
• The EBRD is also extending a US$ 2 million trade finance limit to TNB to support Palestinian importers and exporters

The European Bank for Reconstruction and Development (EBRD) is supporting the Palestinian economy with a US$ 7 million financing package consisting of two facilities for The National Bank (TNB).

Under the European Union (EU)-funded Green Economy Financing Facility (GEFF) Framework, up to US$ 5 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 assistance and investment grants 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 MSMEs and residential sub-borrowers of up to 25 per cent of sub-project investment cost.

The EBRD will also extend a US$ 2 million trade finance limit to support the trade finance business of TNB by issuing guarantees in favour of confirming banks, to support the pre-export and post-import activities of local exporters and importers and the local distribution of imported goods.

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 collaboration with The National Bank will help promote sustainable energy and resource efficiency solutions for businesses and households in the West Bank. This package underscores our shared commitment with the EU to advancing a greener private sector in the region.

Salameh Khalil, TNB’s Chief Executive Officer, commented: “We are proud to be among the first Palestinian banks to partner with the EBRD under the Green Economy Financing Facility. This agreement marks an important step in our commitment to promoting sustainable finance and supporting businesses in their transition to greener practices. We would like to thank the EBRD for this support and thank the EU for the much-needed technical assistance and investment grants..

The National Bank is one of the leading financial institutions operating in the West Bank and has 38 branches and offices. It plays a pivotal role in supporting economic development by offering a diverse range of retail, corporate and investment banking services.

TNB is recognised for a commitment to financial inclusion and innovation, with a focus on empowering underserved populations, particularly women and youth.

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.