Lars Thunell, executive vice-president and CEO of the IFC has signed agreements with Al Rafah Microfinance bank and the Capital Markets Authority to tackle the problems of access to finance for small companies and entrpreneurs in the West Bank and Gaza. The agreements were signed during Thunell's first official visit to the West Bank.
By signing the trade finance agreement, Al Rafah Microfinance Bank became the first bank in the West Bank and Gaza to join the IFC's global trade finance programme as an issuing bank.
The bank is already an existing partner for IFC, and through its advisory services the IFC has helped the bank strengthen its operational strategy and business plan.
"We are pleased to be a part of IFC’s global trade finance programme. Our association with the program will allow us to provide greater services to our clients and expand our trade activities,” notes Talal Nasserudin, chairman of Al-Rafah microfinance bank.
The co-operation agreement signed with Capital Markets Authority aims to develop a leasing market. IFC’s advisory services in the Middle East and North Africa will work with the private sector to promote leasing through a combination of legislative reform and investments in the sector.
“Leasing is an alternative to traditional bank credit that is often more suitable for entrepreneurs and small companies seeking to finance fixed assets. It is particularly advantageous in countries where enforcement of collateral rights is not well developed. An active leasing market in the West Bank and Gaza will increase access to finance for SMEs, helping stimulate economic growth and create jobs,” explains Maher Masri, chairman of the Capital Markets Authority.
Last Updated February 15, 2008
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