The National Bank (TNB) today launched a USD 50 million specialized lending program for Small and Medium Enterprises (SMEs) in Palestine, to strengthen the sector’s resilience against the impact of the coronavirus pandemic. With decreasing preferential interest rates and flexible collaterals, the program will offer finance of up to USD 12.5 million per SME and offer a grace period of up to one year, with the loan tenor extending over a maximum period of seven years.   
Launching the program, TNB’s Chief Executive Officer Salameh Khalil said: “In line with our strategy to support the SME sector in Palestine we are providing, in co-operation with our international partners, the much-needed liquidity to nourish this sector, sustain jobs and contribute towards reinforcing financial inclusion. The new program will reach out to underserved areas and segments such as “Area C” and agriculture, in addition to supporting startups, youth and female-owned businesses. 
“The market is currently in much need of liquidity, to activate the internal trade cycle and evolve our national economy. The growth of the SME sector is of critical importance given that its contribution to the GDP is around 55%.” 
TNB was the first bank in the Palestinian banking sector to sign definitive agreements with the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), to provide the needed liquidity for the SME sector in Palestine to speed up the recovery process of businesses during the coronavirus pandemic.