Ramallah, West Bank – Palestinians Issue First Bonds

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    Palestinian Prime Minister Salam Fayyad speaks at a ceremony announcing the first Palestinian commercial financial bond, in the West Bank city of Ramallah, Tuesday, May 10, 2011.  The Palestinians issued their first bonds on Tuesday, a new milestone in their effort to build the trappings of an independent state. The $70 million in five-year corporate bonds were issued by the biggest company in the Palestinian territories, the Palestinian Development and Investment Co., which has investments in real estate, energy, pharmaceuticals, electronics, communications and tourism.(AP Photo/Majdi Mohammed)Ramallah, West Bank – The Palestinians issued their first bonds on Tuesday, a new milestone in their effort to build the trappings of an independent state.

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    The $70 million in five-year corporate bonds was issued by the biggest company in the Palestinian territories, the Palestinian Development and Investment Co., which has investments in real estate, energy, pharmaceuticals, electronics, communications and tourism.

    PADICO’s chief executive, Samir Hulileh, said the bonds would help to finance a $300 million power plant and an entertainment and tourism center in the West Bank.

    Palestinian and Jordanian banks bought the bonds, he said.

    Salam Fayyad, the prime minister of the Palestinian Authority that controls the West Bank, said his government was encouraging the private sector to float bonds and planned to issue its own bonds at an unspecified date.

    “The Palestinian Authority is determined to build the foundations of an independent state,” said Fayyad, a U.S.-educated economist, adding that the government had dramatically reduced its reliance on foreign aid to a planned $970 million this year from $1.8 billion in 2008.

    In late 2009, Fayyad said he planned to lay the foundations of a state within two years.

    Last month, the U.N. praised the Palestinian Authority’s progress on building institutions required for a future state, such as governance, rule of law, human rights, education and social services.

    But stalled peace talks with Israel and the presence of a rival government in the Hamas-ruled Gaza Strip have complicated the state-building effort.

    Last week, the two major Palestinian factions signed an agreement meant to end the four-year rift between the West Bank and Gaza.

    And the Palestinians are hoping to sidestep the deadlocked talks with Israel by asking the United Nations to recognize their independence at a vote in the annual General Assembly in September.


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    12 Comments
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    charliehall
    charliehall
    12 years ago

    Fayyad is a respected economist and if the Palestinians followed his ideology, they could have a modern state in short order. But his political movement got 2.4% of the vote in the last Palestinian election.

    EMTMoishe
    EMTMoishe
    12 years ago

    LOL

    Still looking for it to pop up on Prudential and Charles Schwab……

    pbalaw
    pbalaw
    12 years ago

    “entertainment and tourism center in the West Bank.”

    I can see it now, book me a flight

    OyGevald
    OyGevald
    12 years ago

    Oh, so does this mean the next time the U.S. sends a delegation there they will no longer have to go under heavy security? Or is the “entertainment” shooting galleries to shoot over the borders?

    chachom
    chachom
    12 years ago

    Something for Neturei Karta to invest in.

    Anonymous
    Anonymous
    12 years ago

    This is really important news and a good sign for EY. It means that there is beginning to be a banking sector in the Palestinian areas that will be able to function independently once they reach a final peace settlement.

    12 years ago

    Supposedly they’ve never defaulted on a payment of principal or interest, like the Israeli bonds.

    RebKlemson
    RebKlemson
    12 years ago

    Can anyone say JUNK bonds lol

    5TResident
    Noble Member
    5TResident
    12 years ago

    You realize, of course, that the Palestinians will redeem those bonds with American or Israeli-supplied money.

    12345
    12345
    12 years ago

    do they come precut for use on shabbos?