$1.2 million in grants to five Palestinian microfinance institutions

Ramallah, West Bank – The Small and Microfinance Assistance for Recovery and Transition (SMART) Program, funded by the U.S. Agency for International Development (USAID) and implemented by the Academy for Educational Development (AED), on May 28, signed grant agreements with five Palestinian small and microfinance institutions at a combined value of approximately $1.2 million.

The grant agreements were signed with Palestine for Credit and Development (FATEN), Palestinian Business Women’s Association (ASALA), BISAN Systems, the Microfinance and Microenterprise Department of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA MMD), and CHF / Loan Guarantee Facility (LGF). Officials from USAID, the Palestinian Authority, the Palestinian Monetary Authority (PMA), the grant recipients, and stakeholders from the Palestinian banking and microfinance industry were present at the signing ceremony hosted in Ramallah by SMART.

The grants will enable the development and launching of new loan products to reach new markets. They will assist with systems automation to improve management and service delivery. They will also provide technical assistance for human resource development.

USAID’s SMART program was launched in October 2006 to assist Palestinian households and small enterprises. It aims to preserve and develop a more resilient microfinance infrastructure in the West Bank and Gaza. Its objective is to help build stronger, larger, and more sustainable microfinance institutions that offer suitable financial services to a growing number of micro and small enterprises and low-income Palestinian households.