14/12/2005 (Agence Europe) - On Tuesday, the Commission signed its €14 million contribution to the newly established European-Palestinian Credit Guarantee Fund. The Guarantee Fund, led by the German Development Bank (KfW), will support Palestinian small and medium size enterprises' financing from local banks in the form of reduced-rate loans and grants. This €29 million Fund will be made up of contributions from the Commission (€14 million), KfW (€5 million), and the European Investment Bank (€10 million). Official estimates show that there are about 93,000 small and medium enterprises operating in Palestine. Ninety percent of them employ 20 persons or less. The European-Palestinian Credit Guarantee Fund will target these enterprises.