Regulatory Alerts2023-01-01
Instructions No. 13 of 2023 Regarding the Handling of Liquidity Shortage in the National Economy
The Palestine Monetary Authority issued Instructions No. 13 of 2023 to address national liquidity shortages by mandating banks to design and implement temporary advances, emergency loans, and specialized financing products for public and private sector employees. The directives require financial institutions to suspend contractual interest, late fees, and commissions on matured installments while capping declining rates at 3%, and to allow flexible rescheduling, grace periods, and debt restructuring without additional charges. Furthermore, the Instructions empower banks to access emergency liquidity from the Authority as a last resort for up to 180 days, with strict documentation and pricing requirements taking effect immediately upon issuance.