The Palestine Monetary Authority announced that it has allocated an additional fund worth 500 million shekels ($133.33 million) to provide financing to various economic sectors affected by the consequences of the Israeli aggression on the Gaza Strip.
The Monetary Authority, which is the central bank of the Palestinian Authority, added in a statement – yesterday, Wednesday – that “the fund aims to grant financing at low interest, on easy terms, and with medium and long-term repayment periods, with sufficient grace periods to ensure that the targeted economic sectors benefit.”
The statement explained that the targeted sectors are those affected by the current economic conditions, with a focus on the health and agricultural sectors, financing renewable energy, and environmental preservation, including small and micro enterprises, and medium and large enterprises.
The Palestinian economy has declined since the beginning of the Israeli aggression on Gaza after the “Al-Aqsa Flood” launched by the Palestinian resistance led by the Izz al-Din al-Qassam Brigades – the military wing of the Hamas movement – on the bases of the occupation army in the Gaza Strip on the 7th of last month.
The crisis was further exacerbated by the Palestinian Authority’s refusal to receive the tax revenues that Israel collects on its behalf in exchange for a 3% commission, after the occupation decided to deduct the portion of these funds allocated to the Gaza Strip.
The Monetary Authority stated in its statement, “The (Sustainability Plus) Fund requires granting financing to targeted facilities at 5% decreasing interest rates for all programs.”
She added that she would design “an incentive program for beneficiaries of financing programs, by giving them a cash refund if they commit to paying.”
The Monetary Authority had launched the “Sustainability” Fund, in 2020, to help establishments affected by the effects of the Corona pandemic. More than 3,000 projects benefited from the fund, and the total value of the facilities granted reached $159 million.
A few days ago, the Palestinian Ministry of Finance said that it would disburse an advance from banks equivalent to half the salary of employees working in the government sector for the past month.
The ministry added in a statement at the time, “An advance from banks will be disbursed to public sector employees and retirees at a rate of 50% of the salary, with a minimum limit of 1,800 shekels ($481).” The statement explained that the Ministry of Finance “will bear the costs that will result from these advances.”
Economic decline
Data from the Palestinian Ministry of Economy revealed – last Monday – a decline in the performance of 85% of economic establishments as a result of the continuous invasions and incursions carried out by the occupation into Palestinian cities, camps and towns.
The Ministry’s “Economic Observatory” showed a decline in the average number of workers in 41% of economic establishments in the West Bank as a result of the economic deterioration in various sectors of the economy, against the backdrop of the repercussions of the ongoing Israeli aggression, with the almost complete halt of production in the Gaza Strip.
The data indicated that most establishments witnessed a decline in monthly working days by an average of between 36% and 42%, while the production capacity of 91% of industrial establishments deteriorated by an average of 43%.
According to the Economic Observatory, 77% of establishments suffer difficulty in moving and distributing goods between cities as a result of the incursions and closures implemented by the Israeli occupation, at a time when 16% of establishments were forced to close completely or partially, in addition to a decline in monthly sales for 97% of establishments.
The Observatory also showed that the Jerusalem Index (Palestine Stock Exchange) declined by 11.4% since the beginning of the war on Gaza, compared to a 2.3% increase recorded from the beginning of the year until the sixth of last October.
The data showed that the industrial sector was the most affected as a result of the occupation’s violations in the northern governorates after the war on Gaza, as 91% of establishments indicated a decline in their production capacity by an average of 43%. The services sector is also one of the sectors whose performance clearly declined after the war, as it indicated 63% of establishments reported a decline in the number of employees by an average of 62%.
