The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently loaned USD 3 million to Palestine for Credit and Development (FATEN in Arabic), a microfinance institution based in the West Bank in Palestine, to provide financial products and services to micro-, small and medium-sized enterprises (MSMEs) in the West Bank and Gaza. According to IFC, approximately 80 percent of employment in these areas is created by MSMEs. IFC reports that as a result of the political turmoil in the region, only 20 percent of the region’s microfinance needs have been met.
IFC’s director of global finance markets, Aftab Ahmed, was quoted as saying, “Despite West Bank and Gaza’s challenges, there remain plenty of enterprising people that require improved access to finance to turn their ideas into viable small businesses. We believe our involvement with FATEN will help reach more of those aspiring entrepreneurs while encouraging others to invest, help create jobs and grow the economy in this challenging market.” As of 2009, FATEN reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 18.2 million, a gross loan portfolio of USD 17.2 million and 7,000 active borrowers.
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion and return on assets of 3.1 percent.
About Palestine for Credit and Development (FATEN): Palestine for Credit and Development (FATEN in Arabic) is a microfinance institution based in the West Bank in Palestine. The organization’s mission is to “strengthen the economic base of Palestinian microentrepreneurs, particularly women, by providing sustainable financial services suited to their needs.” Established in 1999, FATEN also offers Islamic microfinance services for Muslim entrepreneurs. As of 2009, FATEN reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 18.2 million, a gross loan portfolio of USD 17.2 million and 7,000 active borrowers.
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “IFC Loan to Support Entrepreneurs and Create Jobs in West Bank and Gaza”, April 28, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=0169E83225DF332185257880005CEB44
MicroCapital.org Brief, April 18, 2011: International Finance Corporation (IFC), Arab Monetary Fund (AMF) Launch “Arab Secured Transactions Initiative” to Boost Lending to Small and Medium-Sized Enterprises (SMEs), https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-arab-monetary-fund-amf-launch-arab-secured-transactions-initiative-to-boost-lending-to-small-and-medium-sized-enterprises-smes/
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital’s Microfinance Universe Profile: Palestine for Credit and Development (FATEN)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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