$50 Million Financing Deal to Support Palestinian SMEs

The Palestine Monetary Authority and the National Bank have signed a $50 million framework financing agreement aimed at expanding access to capital for micro, small and medium-sized enterprises (MSMEs) across Palestine.

The facility forms part of a broader €400 million initiative backed by the European Union, funded by the European Commission and implemented by the European Investment Bank in partnership with the Palestine Monetary Authority and local banks.

According to the Palestine Monetary Authority, the programme has entered its implementation phase, with financing facilities totalling approximately $395 million expected to be deployed through participating banks. Part of the funding provided to local lenders will take the form of subordinated debt intended to strengthen bank capital while supporting MSME lending.

The initiative also includes €2.1 million in remaining technical assistance funding, part of a wider €3.5 million support package targeting businesses, financial institutions and sector-specific programmes.

The European Investment Bank said the financing is intended to provide Palestinian businesses with reliable sources of capital to help them continue operating, investing and preserving livelihoods amid ongoing economic pressures. The current agreements represent the implementation stage of the €400 million facility announced in October 2025.

For the National Bank, the agreement is expected to expand its capacity to provide more flexible financing solutions to entrepreneurs and small businesses, particularly in underserved sectors and regions.

The financing package brings together international and domestic institutions, including the European Union, the European Investment Bank, the Palestine Monetary Authority and participating Palestinian banks.