Provision of a senior unsecured loan of up to USD 5.0 million to Quds Bank (QB) for on-lending to private micro, small and medium-sized enterprises (MSMEs) and corporates in the West Bank.
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The credit line will be used by QB for on-lending to MSMEs and corporates in the West Bank. The project is part of EBRD's Solidarity Package, which aims at supporting existing clients amid the COVID-19 pandemic.
ETI score: 70
The loan will contribute to the continued functioning of the Palestinian economy by on-lending to MSMEs and corporates to relieve pressure on liquidity and support private sector businesses to overcome the direct implications of the COVID-19 pandemic. 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 QB remain operational (Resilient) and continue commercial lending in line with the market and comparable players (Competitive).
Quds Bank is the fourth-largest local commercial bank and the sixth-largest bank in WB&G, with market share of 7.5%, 8.7% and 7.3% in terms of total assets, loans and customer deposits, respectively, as of YE 2020. QB has been listed on the Palestine Exchange since 1997.
EBRD Finance Summary
Total Project Cost
Provision of medium-term funding.
Environmental and Social Summary
Categorised FI (ESP 2019). Quds Bank is an existing client and will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; and continue to implement the applicable EBRD's E&S Risk Management Procedures for TFP and Micro, SME and Corporate Loans. The E&S due diligence included a review of the Annual E&S Report for 2019 and confirmed the Client's compliance under previous exposure. QB will be required to apply the updated Exclusion List introduced with ESP 2019 as well as the new Referral list. QB's performance will be monitored through the review of annual Environmental and Social Reports to the Bank. There is no GET component associated with this Project.
Technical Cooperation and Grant Financing
Quds Bank will benefit from tailor-made capacity building technical assistance to help develop QB's MSME business, implement MSME lending policies and procedures and introduce new MSME lending techniques and products.
Company Contact Information
Kais Zuhaika, Head of Financial Institutions
Mobile: +970 599 8200 65
Al-Masyoun, P.O Box 2471fa, Ramallah, Palestine
PSD last updated
02 Jul 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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 email@example.com. 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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.