His Excellency Governor of PMA Participates in the opening of a conference to Increase Access to Finance for Smaller Businesses in West Bank and Gaza
Ramallah, West Bank and Gaza, February 14, 2019—
His Excellency the Governor of the Palestine Monetary Authority Mr. Azzam Shawwa participated in the opening of a conference to help boost access to finance for smaller businesses and promote transparency for lenders in the West Bank and Gaza which has been organized by IFC, a member of the World Bank Group, together with the Ministry of National Economy (MONE), Palestine Monetary Authority (PMA) and Palestine Capital Market Authority (PCMA) .
The “Movable Asset-Based Finance in Palestine: Opportunities for Financiers and SMEs” conference focused on how smaller businesses can use accounts receivables, inventories and other types of tangible and non-tangible assets to secure financing. Movable assets often account for most of the capital stock of private firms and comprise an especially large part for small and very small businesses, especially in developing countries, making a sound legal and regulatory framework essential.
His Excellency Mr. Azzam Shawwa, the Governor of Palestine Monetary Authority, pointed out the importance of the role of the Movable Assets Registry from the perspective of its contribution to strengthening economic growth as key element of the infrastructure of the financial system. It is also important for its empowerment of the small and medium enterprises to access credit sources; in addition to its important role in protecting the rights of contracting parties and ensuring safe and conducive investment environment. The Movable Assets Registry also enhances competitiveness among financial service providers, which boosts the levels of financial inclusion.
Palestine is among the first Arab countries to initiate, in partnership with the International Finance Corporation, and launch this system in 2016. Palestine Monetary Authority provides incentives to the banking system and Micro Finance institutions to endorse the MAR in registering collaterals obtained in return for granting facilities, which has positive impact on the growth of the banking and Micro Finance credit portfolio given to small and medium enterprises in Palestine.
“Palestinian SMEs comprise over 90 percent of all companies and yet just one in four are able to access the financing they need to grow their businesses and create jobs,” said Youssef Habesch, IFC Principal Country Officer in the West Bank and Gaza, “A modern secured transactions framework will help increase the use of movable asset-based finance, which can provide much-needed financing for smaller businesses.”
The conference will also look at various aspects of modern movable asset-based lending systems and the technological underpinning for secured transactions, which can help drive economic growth. The event will bring together senior officials from the government as well as 75 high level representatives from the financial and private sector.
IFC has been working with the Ministry of National Economy since 2010 to help develop a modern secured transactions framework. Following completion of the legal framework in 2016, IFC has been focusing on capacity building and raising awareness, particularly around movable asset-based finance, for key stakeholders in the West Bank and Gaza,
IFC, a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org