Ramallah:

June 13, 2018, Wednesday PFESP and Bank of Palestine, signed at PFESP's seat in Ramallah, a 50-million-dollar agreement. This is to finance the project of establishing micro and micro-projects for graduates and unemployed youth.

The agreement that comes in cooperation with the Ministries of Labor and Finance stipulates the commitment of Bank of Palestine to provide 50 million dollars. This is in a form of concessional loans at a low interest rate and a grace period for graduates and young people wishing to establish income-generating development projects. This is after they are studied and submitted by the unified employment offices of PFESP located in all governorates.

The agreement was signed by the Chairman of PFESP, the Minister of Labor, Dr. Mamoun Abu Shahla, General Director Rushdi Al-Ghalayini, on behalf of the Bank of Palestine, and Undersecretary Farid Ghannam, on the Ministry of Finance.

The agreement, which will last for years to come, allows people interested in establishing productive projects to obtain personal loans from Bank of Palestine. They amount to 15 thousand dollars per loan. This is after the project is studied and the necessary facilities are provided by the unified services window of PFESP located in all governorates.

Chairman of PFESP and Labor Minister Mamoun Abu Shahla said that this agreement is purely national and will allow thousands of young people to create micro and micro productive projects in the various governorates of the country. It will in turn inevitably contribute to reducing the high unemployment rate and alleviating the import. This was in a speech to him during the signing ceremony of the agreement.

Abu Shahla added that establishing productive projects is the best way to overcome the phenomenon of high unemployment amongst Palestinian society. It reflects the government strategy to combat this phenomenon.

Abu Shahla explained that this concept of work has been tried in advanced countries and has proven effective in raising its economy and eliminating the phenomenon of unemployment. He stressed President Mahmoud Abbas and Prime Minister Dr. Rami Al-Hamdallah’s keenness to provide all facilities in order to alleviate the impact of the unemployment problem and employ graduates and the unemployed generally.

Abu Shahla stated that the beneficiary of the project will feel comfortable because of the low interest rate. it will not exceed five percent, and the grace period ranges between six months and a year and other credit facilities.

Abu Shahla added that PFESP receives proposals for cooperation by other national banks. They are in the stage of development and completion in order to reach the desired and strategic goal of recruiting a billion dollars to establish a quarter of a million projects. This is during the next few years.

He explained that PFESP aims from this work to reduce the high unemployment rates among new graduates, integrate new graduates into the Palestinian labor market, establish and circulate a culture of self-employment, and encourage creativity and innovation among youth. In addition to supporting and raising the level of efficiency of small, medium and entrepreneurial projects, and stimulating the establish of projects that are based on creative ideas and have a chance in life and growth.

Abu Shahla also stressed the importance of encouraging the use of modern technology in startup projects. In addition to contributing to absorbing the local workforce, providing employment opportunities for the unemployed, increasing production, and developing and stimulating economic growth.