Palestine Monetary Authority Issues Instructions to Banks Concerning Investment in Projects that Contribute to Economic Growth
Palestine Monetary Authority has recently issued instructions to banks with respect to invest in economic projects that contribute to economic growth, aimed at motivating banks and enhancing their role in sustainable economic development by investing in Palestinian start-ups that create jobs and encourage innovation and creativity and support entrepreneurial and environmental conservation projects.
The instructions allow banks to initiate and contribute to the establishment of new entrepreneurial and economic projects with the help of specialists and knowledge in various businesses and with a contribution of up to 80% to the property rights of a Palestinian start-up company, whose objectives are to carry out agricultural and livestock production activities, industrial, alternative energy or information technology, as well as companies active in the field of environment conservation. Palestine Monetary Authority has -through these instructions- identified a number of requirements to be met by banks wishing to invest in the companies mentioned.
His Excellency the Governor of Palestine Monetary Authority, Mr. Azzam Shawwa, said that these instructions were a continuation of the development efforts of Palestine Monetary Authority in improving regulatory frameworks and based on its responsibilities in maintaining financial and monetary stability and achieving economic development. Mr. Shawwa pointed out that Palestine Monetary Authority had adopted a plan to stimulate economic growth based mainly on stimulating banks and directing them towards financing productive economic sectors through the application of a set of tools and procedures aimed at encouraging banks to engage in the plan. These instructions, according to Mr. Shawwa, allow entrepreneurs and owners of small businesses and the businesses that preserve the environment and generate electricity to take the initiative and present their business ideas to banks so that banks would participate in the establishment of new businesses.