Governor of Palestine Monetary Authority Heads “Financing Sources of Local Economic Development” Session at the “First National Conference for Local Economic Development”

Ramallah – His Excellency Mr. Azzam Shawwa, the Governor of Palestine Monetary Authority, headed the “Financing Sources of Local Economic Development” session held in Ramallah today during the “First National Conference for Local Economic Development.” The Conference is organized by the Ministry of Local Government. Mr. Naseem Nour from Palestine Investment Fund, Mr. Mohammad Al Barghouti Chairman of the Board of Directors of the Association of Banks in Palestine, Mr. Hani Al-Hayik from the Association of Palestinian Local Authorities, Mr. Sami Al-Saidi General Manager of Arab Islamic Bank representing the private sector, and representatives of the public sector and local authorities and private sector establishments participated in the session.  

Mr. Shawwa addressed at the opening of the session the situation of the Palestinian banking system, its stability, and its role in revitalizing the financial market by encouraging and attracting local and foreign investment and the positive impact of this on supporting economic growth in general, Mr. Shawwa affirmed that supporting economic development to ensure sustainable growth was one of the main tasks of Palestine Monetary Authority.   

Mr. Shawwa said that the credit facilities given especially to the private sector had noticeable grown with high annual growth rates reaching on average 19.3% during 2010 to 2016 hitting $6865.9 million at the end of 2016, most of which was directed to the private sector leaving positive impact on economic growth rates that had noticeably grown at an annual rate of 9.4% throughout 2010 to 2016. Facilities, reaching $10 billion, constituted 65% of clients’ deposits, said Mr. Shawwa. 

Mr. Shawwa said that banks had been instructed to introduce modern electronic banking services in order to enhance the efficiency of such services delivered to the public and to facilitate access to sources of financing. According to Mr. Shawwa, there were 663 ATMs, 118,100 credit cards, 547,000 direct discount cards by end of 2016.  

The participants in the session actively discussed with many ideas a number of topics especially the role of the private sector establishments, local authorities, and banks in enhancing local economic development.   

The participants recommended at the end of the session enhancing and developing legislations as necessity and basis for boosting local economic development and to institutionally prepare the local authorities sector – municipalities and local councils – to be able to engage in effective partnerships and interaction with the privates sector including businesses, banks, and financial institutions. They also recommended developing the Municipalities’ Fund in cooperation with the banking sector to set up strategy for local economic development.  

The Conference stressed the importance of integration of all sectors at national and local levels as a national and economic necessity, and enhancing and focusing on competitiveness of each geographic region across the homeland and to support tourism.

The Conference also stressed the importance of developing a vision for the banking sector to be more responsive to local economic development and to direct lending towards supporting productive businesses and create entrepreneurial initiatives especially among the youth sector and marginalized groups to achieve the objectives of financial inclusion.