Regulatory Alerts2020-01-01
Instructions No. 24 of 2020 Regarding the Postponement of Monthly Installments During the Health Crisis
The Palestine Monetary Authority issued Instructions No. 24 of 2020 to mandate specialized lending institutions to offer borrowers two repayment options for installments postponed during the health crisis: early repayment without early-termination fees, or amortization of the deferred amounts over the remaining loan term. These measures explicitly override conflicting provisions in the Authority's 2016 Responsible Lending Instructions to ensure consumer flexibility. All relevant entities must enforce these provisions effective immediately upon issuance on June 30, 2020.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (24) of 2020
Regarding the Postponement of Monthly/Periodic Installments During the Health Crisis
Based on the provisions of Decision No. (132) of 2011 on the Licensing and Supervision of Specialized Lending Institutions, and after reviewing Instructions No. (5) of 2020 regarding the Palestine Monetary Authority's procedures to mitigate the impacts of the health crisis, and Instructions No. (2) of 2016 on Responsible Lending, and in the public interest, we have issued the following Instructions:
Article (1)
Repayment of Postponed Installments
Specialized lending institutions must provide their customers with the option to choose either of the following:
- Early repayment of installments postponed during the health crisis at any time without incurring an early repayment fee.
- Spreading the value of postponed installments over the loan term, except as provided in Article (6), paragraph (5.2) of Instructions No. (2) of 2016 on Responsible Lending.
Article (2)
Implementation and Enforcement
All competent authorities must implement the provisions of these Instructions within their respective jurisdictions, effective from the date of their issuance.
Issued in Ramallah on 30/6/2020
Financial Stability Group Palestine Monetary Authority
Note: At the bottom of the page, contact information is provided:
- Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Fax: +970 2 2415251 | Phone: +970 2 2415251
- Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Fax: +970 8 2825713 | Phone: +970 8 2825713
- www.pma.ps