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Forced to Default
This dedicated six part series gives a glimpse into the
hardship and indebtedness faced by Microfinance clients in the occupied
Palestinian territory, especially in Gaza. Over the last 18-month
period, following the ever more restrictive closure regime coupled with
the economic boycott of Palestinian goods and the frequent
fuel/electricity cuts, many clients who once were UNRWA’s success
stories are now finding themselves in default.
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Cotton Candy Man’s Workshop Stands Idle Sameh has been in the
cotton candy business for 21 years. He used to sell his machines all
over the West Bank and in Israel. The events that followed the election
of the Hamas government in January 2006 have had a particularly harsh
impact on Sameh’s ability to trade. Despite his valiant efforts to
continue selling his cotton candy machines, his business has gone
bankrupt and he is now selling vegetables at the local market to earn
enough money to feed his family. "Mine wasn’t the only business to go
bust. This is the outcome of continual closures, checkpoints and the
barrier," says Sameh. [More…] |
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A Dent in Sino-Palestinian Trade Rafiq had been successfully
importing propylene fibre from Israel and China for a number of years.
In 2006, following Hamas’ electoral victory, Israel withheld the tax
revenue owed to the Palestinian Authority, leaving public sector
employees without salaries for months. Retailers in Gaza were soon
unable to pay back wholesalers. By September 2006, one wholesaler owed
Rafiq more than USD 21,000. "I can no longer pay back my loan
instalments. If you look at my credit history over the past 11 years,
you’ll find that I’ve always closed my loans before the due dates. I’m
embarrassed when I don’t meet my commitments," says Rafiq. [More…] |
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Nothing to Sell and No Place to Travel
Halima used to travel to Egypt to bring back goods to
sell in Gaza. In 2006, the Gaza-Egypt border crossing was closed and a
boycott of the Hamas government led to the non-payment of public sector
salaries. Halima’s husband wasn’t paid and it fell to Halima alone to
support the family. With the border crossing closed, she couldn’t travel
to Egypt to stock up on sales items. Without salaries, residents in Gaza
had scant money to spend. "Now I have nothing left. I hope that the road
to Egypt will open so that I can pay back my loans and feed my family",
says Halima. [More…] |
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Plumbing Business Going Down the Drain
Isam runs a plumbing hardware store in the centre of Ramallah.
Following increasing Israeli restrictions on movement in the
West Bank, Isam has lost most of his client base from the
surrounding villages. "My store used to be packed with
plumbing hardware. Today, half my store is empty and there is
nothing I can do about it!" says Isam. [More…] |
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Veteran Loan Client Dealt a Heavy Blow Mother Aysha
is an extraordinary 66-year-old woman, who supports a family
of 25 by making traditional Palestinian embroidery and working
the markets of Gaza. Since early 2006, the socio-economic
decline has dealt a heavy blow to this veteran trader. For the
first time in 12 years, Aysha is unable to repay her loan
instalments to UNRWA. "What hurts the most is that we don’t
know when this situation will stop,’ she says. [More…] |
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No More Clay on the Potter’s Wheel
Sabri used to own a thriving pottery business selling pots,
bowls, jugs and vases into Israel. Since June 2007, the
borders out of Gaza have remained tightly shut and Sabri has
found himself in financial difficulty. “The income I generate
from my pottery business has crumbled. I’ve used up everything
to repay my loans. If the current situation continues I will
be forced to close down.” [More…] |
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