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.

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…]

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…]

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…]

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…]

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…]

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…]