PRESS RELEASES

U.S. Under Secretary of State Hughes, OPIC President Mosbacher and Palestinian President Abbas Launch $228 million Palestinian Small and Medium Enterprise Finance Program  

Press Release

July 25, 2007

Jerusalem

For Immediate Release

RAMALLAH, West Bank – In a ceremony at the Palestinian Presidential Headquarters today, Palestinian President Abbas, U.S. Under Secretary for Public Affairs Karen Hughes, and President of the American Overseas Private Investment Corporation (OPIC) Rob Mosbacher, Jr. launched an initiative approved by President George W. Bush to generate $228 million in loans to small and medium Palestinian businesses.  By making loans available to entrepreneurs in disadvantaged areas who may otherwise not have access to investment capital, the program aims to improve the living standards of Palestinians.    

“The United States is committed to strengthening the Palestinian economy as an important step towards a peaceful and independent Palestinian state.  This joint loan program is part of the on-going effort by U.S. President Bush to provide assistance to the Palestinian people and shows his confidence in the Palestinian Government of President Abbas and Prime Minister Fayyad,”  Under Secretary Hughes stated in her remarks.  

This Palestinian Small and Medium Enterprise Finance loan fund will use $110 million from the U.S. government entity OPIC; $50 million from PIF to leverage $228 million in loan money.  The Norwegian government is providing $5 million for operating costs for the Fund, estimated at $1.5 million a year.  The Middle East Strategy Group (MESG) of the Aspen Institute will also help cover these costs.   The Aspen Institute in an American non-governmental organization, whose membership includes prominent American, Palestinian and Israeli business leaders and policy makers.  

“The Palestinian Small and Medium Enterprise Finance Program will infuse much needed investment funds into the Palestinian business sector, allowing even small business owners to use their own talents and energy to improve conditions for themselves and their families,”  Mr. Mosbacher noted.      

The agreement to launch the fund was signed by Mr. Mosbacher.; Aspen Institute MESG Chairman Berl Bernhard and Chairman Mohammad Mustapha of the Palestine Investment Fund.   Palestinian President Abbas thanked the contributing donors for making this project a reality.   

President Bush first announced his approval for the OPIC loan program during a speech on July 16, when he reiterated American support for the Palestinian people and outlined an overall 2007 U.S government assistance to the Palestinian people that includes $144 million in assistance to UNRWA,  $190 million for basic human needs, food aid,, and democracy, civil society and private sector development, and $80 million to help reform the legitimate security services of the Palestinian Authority.  

For more information please contact the U.S. Consulate’s Press Office at 02-622-6908 or 02-622-6909 or Public Affairs Officer Micaela Schweitzer-Bluhm at 054-678-8456.