The PMA launched the 'Istidama+' Fund to assist enterprises affected by the consequences of war

The portfolio size is 500 million NIS

The PMA has launched the "Istidama+" Fund with a value of 500 million shekels to provide financing for various economic sectors. The aim is to inject liquidity into the Palestinian market and assist enterprises affected by the consequences of war in their recovery and financial sustainability. This initiative aims to have a positive impact on the national economy.

The fund is directed towards providing low-interest financing with favorable terms and medium to long-term repayment periods. It includes sufficient grace periods to ensure the targeted economic sectors benefit. These sectors primarily comprise those affected by the current economic conditions, focusing on health, agriculture, renewable energy financing, and environmental conservation. This encompasses SMEs and large-scale enterprises within the mentioned sectors.

In addition, the project aims to assist the affected enterprises, especially those most affected, in recovering from the political and economic crisis resulting from the war. It aims to provide raw materials and necessary supplies for its continued operation and product development, preserve its workforce, sustain production cycles, and address liquidity shortages.

The "Istidama+" Fund stipulates that financing for the targeted enterprises will be provided at a decreasing  interest rate of 5%, across all programs. The PMA is required to design an incentive program for beneficiaries of the financing programs by offering them cash refunds if they comply with repayment terms.

The PMA Governor, in turn, emphasized that the "Istidama+" Fund is part of a series of interventions to address the effects of the sharp decline in cash flows to the national economy. Among these interventions were instructions issued by the PMA to banks to postpone loan repayments in the Gaza Strip and restructure or reschedule them in the West Bank and Gaza Strip, to protect the credit ratings of borrowers affected by the consequences of war. The Governor stressed that the PMA will do everything possible to assist individuals and companies in overcoming these difficult circumstances and maintaining economic activity. This includes implementing precise measures to ensure the banking system’s resilience and strengthen its ability to deal with any predictable economic shocks.

The PMA launched the ' Istidama' Fund in 2020 to assist enterprises affected by the repercussions of the 'COVID-19' pandemic. More than 3,000 projects benefited from the fund, with a total value of facilities granted amounting to 159 million US dollars. It is noteworthy that the traditional Istidama Fund program remains operational, whether concerning SME projects. The PMA is developing the Monshati Platform, an interactive platform aimed at providing economic advice and feasibility studies for projects. Interested parties can also apply for financing through the bank they deal with via the Monshati Platform.