EBRD makes equity investment in Bank of Palestine
Summary
Gross domestic product (GDP) is set to shrink by anywhere between 6.5 and 9.6 per cent owing to employment losses and rising security tensions, which are continuing to affect mobility and business activity.The EBRD investment in Bank of Palestine will have a significant impact, giving a muchneeded boost to the capital of a systemically important financial institution that accounts for more than 30 per cent of the Palestinian market.Francis Malige, the EBRDs Managing Director for Financial Institutions, said: We are fully committed to supporting the Palestinian economy. Our aim with this investment is to help Bank of Palestine maintain its position as the leading local institution, leaving it well placed to capture any future growth stemming from reconstruction efforts. Two strategic international development institutions, the EBRD and the IFC, have joined forces to invest in the bank, helping to boost our capital and enabling us to support the economic recovery that will be required after the devastating war and economic crisis that our economy is enduring. This investment is important for our future growth, sending a message of hope and partnership, confidence in the future role that the bank intends to play in the local economy and faith in the banks planned regional expansion. On behalf of my shareholders, board and staff, I would like to thank and salute the visionary leaders of the EBRD and the IFC.Since the start of its activities in the West Bank and Gaza in 2017, which are conducted through a trust fund, the EBRD has approved 27 transactions worth a total of 142 million.