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Proparco supports Faten's action in the most fragile areas of the Palestinian Territories

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With the granting of an ARIZ TPE portfolio guarantee to the first microfinance institution in Palestine, Faten, Proparco is supporting financial inclusion in the country. The $1.86 million (equivalent to '1.75 million) guarantee will support Faten in growing its portfolio of loans to MSEs in the higher risk areas of Gaza, East Jerusalem and Zone C of the West Bank.

Established in 1998 with the status of a non-governmental organization, Faten took license from PMA in 2014, initially focusing on women entrepreneurs and the most marginalized populations, offering group loans to start income-generating activities. It then expanded its social mission and adapted its service offering to include all local entrepreneurs and SMEs.

Thus, since its establishment, Faten has demonstrated its ability to serve a growing client base throughout the Palestinian territories, with over 26,000 borrowers. This ARIZ TPE portfolio guarantee in Gaza, Area C and East Jerusalem will enable the MFI to maintain its activity in these areas. The guarantee specifically targets high-impact sectors such as health, agribusiness/food security, education, handicrafts, renewable energy, women's entrepreneurship, and transportation.

The ARIZ TPE guarantee covers 80% of the final loss associated with a portfolio of loans granted to VSEs/SMEs in fragile countries, particularly in the priority areas of the Ministry of Foreign Affairs and Europe.

“Supporting the first microfinance institution in Palestine that works for greater local financial inclusion fits perfectly with Proparco's strategy. We are pleased to be able to deploy this guarantee to cover Faten's loans and thus encourage local SMEs and entrepreneurs in the context of the ongoing health crisis" said Yann Jacquemin, Head of Guarantees for Development.

“This guarantee program helps towards Faten’s funding activities to the most vulnerable communities in Palestine, especially in Gaza and Area C of the West Bank. We are glad with this partnership with Proparco, which will enable Faten to extend its portfolio where it is most needed” said Anwar Jayousi, Executive Director of Faten.