FIF - Vitas Palestine - SME loan


West Bank and Gaza

Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

29 Sep 2021



PSD disclosed:

15 Sep 2021

Project Description

Provision of an SME loan of up to USD 3.0 million (EUR 2.5 million equivalent) in favor of Vitas Palestine for Microfinance Company (Vitas Palestine), a for-profit microfinance institution incorporated in the West Bank.


Project Objectives

The credit line will be used by Vitas Palestine to on-lend to MSMEs operating in all sectors in the West Bank.  

Transition Impact

ETI score: 60

The loan will contribute to the continued functioning of the Palestinian economy by on-lending to MSMEs. The goal of this operation is to ensure the resilience of the financial sector and preserve competition in the sector. More specifically, it will help Vitas Palestine remain operational (Resilient) and continue commercial lending in line with the market and comparable players (Competitive).


Client Information


Vitas Palestine for Microfinance Company (the "Company" or "Vitas Palestine") was established in its current form in 2013 in Ramallah, West Bank. In 2015, the Company obtained its license as a private specialized lending company from the Palestine Monetary Authority ("PMA") and is regulated by it. Currently, the Company operates in both the West Bank and Gaza through 10 branches (of which seven are in the West Bank and three are in Gaza), and employs 120 people and has a total lending portfolio of around USD 49.0 million.

EBRD Finance Summary

USD .00

USD 3,000,000


Total Project Cost

USD 3,000,000.00

USD 3,000,000



Provision of medium-term financing and capacity building technical assistance as well as supporting the client with adopting gender standards and an equal opportunities' action plan.  

Environmental and Social Summary

Categorised FI (ESP 2019): Vitas Palestine for Microfinance Company is a new client and will be required to comply with PRs 2, 4 & 9 and implement the EBRD's Environmental & Social Risk Management Procedure for Micro, SME and Corporate Lending.  The client has completed the standard E&S due diligence questionnaire and this has been reviewed by ESD.  While the risk profile presented by their portfolio is low, there are certain minor aspects of their EHSS risk management structure that will require upgrading to be compliant with the Bank's PRs, and these will be agreed with the client.  ESD will support the client in carrying out these changes.

Technical Cooperation and Grant Financing

The project will be accompanied with tailor-made technical cooperation ("TC") program for capacity building for Vitas Palestine. The TC will include: (i) assessing the credit risk as well as conducting a digitalization assessment on Vitas Palestine to provide recommendations on developing the Risk function and the IT back-office to meet international best practices for MFIs, and (ii) assessing the AML/CFT function at Vitas Palestine and develop it further as well as provide targeted trainings on AML/CFT to Vitas's management. EBRD also mobilized funds to cover the costs of the legal due diligence on Vitas Palestine. All technical assistances will be covered from the Multi-Donor Trust Fund for WB&G.

Company Contact Information

Marwan Madia
+972 2 241 0510

PSD last updated

15 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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