The Japan International Cooperation Agency (JICA) Invests 30 Million USD in the First Additional Tranche of Bank of Palestine's Capital

JICA Issues 30 Million USD Investment in Bank of Palestine's Additional Tier 1 Capital Tranche, Supporting Small and Medium Enterprises

Bank of Palestine Group announced the signing of an agreement with the Japan International Cooperation Agency - JICA - for the investment of 30 million USD in the first additional tranche of Bank of Palestine's capital base. The investment by JICA is the first of its kind by the Agency in Palestine and globally, after obtaining the approval of the Palestinian Monetary Authority.

The signing of the agreement was attended by Hisham Shawa, Chairman of the Bank of Palestine Group; Mahmoud Shawa, CEO of the bank; Dr. Firas Milhem, Governor of the Palestinian Monetary Authority; Mr. Eigo Azukizawa, Director of Private Sector Partnerships and Financial Affairs at JICA; Mr. Mitsutaka Hoshi, JICA's Resident Representative in Palestine; Ambassador of Japan to Palestine Yuichi Nakashima; Baraq Nabulsi, CEO of the Palestinian Capital Market Authority; and other officials from JICA and the Bank of Palestine.

The agreement provides that JICA shall subscribe to 30 million USD to the additional Tier 1 capital tranche of Bank of Palestine's capital base, to further enhance its financial resilience and increase its ability to finance small and medium-sized enterprises. This will equally enable the Bank to absorb future risks and challenges with greater ease. This investment is pending the approval of Bank of Palestine's general assembly and is fully compliant with the relevant laws and regulations, including the Basel III capital adequacy criteria.

Hisham Shawa commented with pride and happiness, " Signing this agreement with JICA shows that investing in Bank of Palestine's additional capital tranche is considered a big achievement, which reflects the increasing confidence in the Bank's role toward the development of Palestine, and specifically to sustain economic growth, while simultaneously driving social impact." He underlined the fact that the aforementioned agreement would enhance even more the current relations of Bank of Palestine with its local and international investor base.

Eigo Azukizawa, on behalf of JICA, said the partnership with Bank of Palestine is something to be proud of since the investment targets SMEs-a very important sector in the Palestinian economy. He reiterated JICA's commitment to cooperating with Palestinian institutions for the sake of economic sustainability and development.

Mahmoud Shawa regarded this agreement as a serious step in reinforcing the approach toward financial inclusion for Palestinian society, whose 95% is composed of SMEs. In his view, this partnership would enable an enrichment of the toolbox of banking services to better respond to the financial needs of these kinds of subjects.

Moreover, Dr. Firas Milhem, Governor of the Palestine Monetary Authority, added: "We also need to create an enabling environment that would encourage banks to adopt global financial tools in line with our regulations and support sustainable economic growth in several important sectors, especially SMEs.".

Baraq Nabulsi, CEO of the Palestinian Capital Market Authority, stated that this agreement would play a pivotal role in reinforcing the bank's capacity for the financing of SMEs, entrepreneurship, and women- and youth-led projects. He added, "This agreement with JICA will open a window toward different alternatives to access appropriate finance, allowing many international institutions to be engaged in banking and financial markets in Palestine."

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