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Governor Al Wazir Witnesses the Signing of IFC and Bank of Palestine Strategic Investment Partnership Agreement to Support Private Sector Development in West Bank and Gaza
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Governor Al Wazir Witnesses the Signing of IFC and Bank of Palestine Strategic Investment Partnership Agreement to Support Private Sector Development in West Bank and Gaza

The Governor of the Palestine Monetary Authority Dr. Jihad Al Wazir witnessed the signing of a strategic investment partnership agreement between the IFC, a member of the World Bank Group and the Bank of Palestine (BoP). Under the agreement, the IFC will acquire a 5% stake in the banks equity investing $13 million in the bank. The IFC and Bank of Palestine strategic investment partnership agreement will provide further support to economic development in Palestine and will help strengthen the domestic financial sector and facilitate sustainable private sector development in the challenging environment of the Palestinian economy.

In his speech at the signing ceremony, Dr Al Wazir, said, ?We welcome IFC's renewed presence in the financial sector Palestine. By partnering with the Bank of Palestine, the largest national banking institution, IFC will share its global expertise and knowledge of best practices and corporate governance. We believe that IFC can help foster stability and intermediation of the financial sector, which is important for economic growth. This will also benefit other banks and create a strong demonstration effect for potential financial sector investors.

The Bank of Palestine is a leading bank, with the largest distribution network in the West Bank and Gaza. Its universal banking strategy helps small and medium enterprises and low-income people obtain products and services in a conflict-affected region where access to finance is limited. The bank?s shares have been traded on the Palestinian Securities Exchange since November 2005.

Hashim Shawa, General Manager of the Bank of Palestine, said, ?We are very excited to engage in a long-term partnership with IFC and believe that its strategic support will strengthen our position in the market. With IFC's support, we can advance our student loan, trade finance, housing mortgage, and SME lending projects. This will enable us to serve more Palestinians and expand our regional presence across and beyond the West Bank and Gaza.

Michael Essex, IFC Director for the Middle East and North Africa, said, IFC is working to broaden and deepen financial intermediation and help develop the private sector in the West Bank and Gaza by introducing long-term capital and debt financing and by promoting best practices in risk management and corporate governance. Developing our relationship with the Bank of Palestine will help us meet these objectives.

About the PMA

The Palestine Monetary Authority (PMA) is the emerging Central Bank of Palestine. Its overall purpose is to assist in the maintenance of the stability and effectiveness of the Palestinian financial system, Promote sustained economic and financial growth of the Palestinian economy through effective and transparent regulation and supervision of Banks operating in Palestinian Territory;. Development of Monetary Policy designed to achieve price stability; overseeing the implementation and operation of modern, efficient payment systems. The PMA was initially established in 1995 by presidential decree as an independent institution and later by an act of the Palestine Legislative Council PMA Law Number (2) of 1997 which outlined the full authority and autonomy of the PMA.

About the Bank of Palestine

The Bank of Palestine, established in 1960, is a leading commercial bank with a network of 31 branches in the West Bank and Gaza with headquarters in Ramallah. Operating as a full service commercial bank, it engages in retail and corporate lending operations and offers a full range of financial services to over 200,000 customers. Bank of Palestine has assets close to $1 billion, customer deposits reaching $800 million and loan facilities close to $300 million. Bank of Palestine has 720 employees. The bank was listed on the Palestinian Securities Exchange in November 2005 and is considered one of the top three ?blue-chip? stocks traded. Bank of Palestine has a network of over 1,500 point of sale machines in merchant outlets to support all credit card transactions in the Palestinian Territories. For more information, visit www.bankofpalestine.com.

About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
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