Regulatory Alerts2020-01-01
Palestine Monetary Authority Instructions No. 27 of 2020 on Mitigating the Financial Crisis and Coronavirus Crisis
The Palestine Monetary Authority issued Instructions No. 27 of 2020 to mitigate the economic impact of the financial crisis and the coronavirus pandemic by allowing banks to restructure and reschedule credit facilities for affected borrowers. The directive mandates temporary liquidity relief measures, including interest-free overdraft ceilings and specific collateral adjustments, while requiring banks to maintain minimum liquidity ratios and conduct rigorous credit risk assessments. It further stipulates that these measures apply to existing loans prior to March 1, 2020, and excludes new government sustainability program loans, ensuring transparency and continued credit access for viable businesses.
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