MICROCAPITAL BRIEF: EBRD Boosts Loan Ceiling of Quds Bank to Support Cross-border Trade, MSMEs in West Bank, Gaza

Recently, the UK-based European Bank for Reconstruction and Development (EBRD) agreed to increase the credit line it has open for Quds Bank, a commercial bank operating in the West Bank and Gaza, by USD 10 million. Half of the new increment is for Quds Bank to use for short-term lending to increase the liquidity of micro-, small and medium-sized enterprises (MSMEs) as well as corporates. A portion of this is earmarked for MSMEs that have managed little or no growth as a result of funding scarcity caused by the COVID-19 pandemic. The remaining USD 5 million will increase the finance limit on an existing agreement between the parties under EBRD’s Trade Facilitation Programme (TFP), which leverages arrangements such as cash advances and guarantees to facilitate trade among EBRD member regions as well between these regions and non-member countries.

Founded in 1995 and based in the city of Ramallah, Quds Bank has 39 branches across Palestine and offers services such as corporate banking and loans for businesses, homeowners and vehicle buyers. Financial data on the firm are available in Arabic.

Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of MSMEs. With a focus on “the promotion of private and entrepreneurial initiative,” the bank disbursed approximately EUR 11 billion (USD 13.3 billion) to 411 projects during 2020. EBRD’s shareholders comprise 69 countries plus the EU.

By Teo Lin-Bianco, Research Associate

Sources and Additional Resources

EBRD press release
https://www.ebrd.com/news/2021/ebrd-strengthens-small-businesses-and-trade-in-west-bank-and-gaza.html

Quds Bank homepage
https://www.qudsbank.ps/

Quds Bank annual report 2020
https://www.qudsbank.ps/uploads_report/Annual_report_2020.pdf

TFP webpage
https://www.ebrd.com/work-with-us/trade-facilitation-programme.html

Previous MicroCapital article on EBRD
https://www.microcapital.org/microcapital-brief-ebrd-lends-1-2m-to-erste-groups-sparkasse-leasing-doo-skopje-to-support-small-medium-sized-enterprises-smes-in-north-macedonia/

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