KfW signed an agreement with the Palestinian Ministry of Finance for additional funding to finance EPCGF micro finance initiative. The additional Euro 2.5 million will be used as guarantees to cover commercial borrowing of qualified micro finance institutions and to cover portfolio risks associated with banks’ lending to micro finance enterprises.
Additional T.A amount of Euro 250 thousand has been allocated. Terms of reference are being developed outlining the use of the TA portion of the fund. The T.A would be in the form of workshops and/or specific task assignments.
EPCGF is currently looking at qualifying interested banks to support their downscaling efforts into micro finance through the extension of the guarantee.