Regulatory Alerts2024-01-01
Palestine Monetary Authority Instruction No. 1 of 2024 Amending Instruction No. 12 of 2023 on Financial Continuity of the National Economy
The Palestine Monetary Authority issued Instruction No. 1 of 2024 to amend the original financial continuity regulations by introducing specific measures for credit portfolios in the Gaza Strip. The directive mandates the deferral of loan installments for Gaza residents until April 30, 2024, with no interest or fees charged during this period. Borrowers are required to settle deferred amounts by May 15, 2024, or utilize alternative repayment options such as extending the loan term or using Islamic financing products.
Palestine Monetary Authority
Instruction No. (1) of 2024
Regarding the Amendment of Instruction No. (12) of 2023 Concerning the Financial Continuity of the National Economy
Based on the provisions of Law No. (9) of 2010 Concerning Banks, particularly Articles (40, 41, 72) thereof, In accordance with the authorities vested in us, And in pursuit of the public interest, We have issued the following Instructions:
Article (1)
Definitions
The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise: The Original Instructions: Instruction No. (12) of 2023 Concerning the Financial Continuity of the National Economy.
Article (2)
Handling of Credit Portfolios Granted in the Gaza Strip
The text of paragraph (1) of Article (4) of the Original Instructions is replaced with the following text:
- Deferral of loan installment deductions for borrowers residing in the Gaza Strip from the date of issuance of the Original Instructions until 2024/04/30, with these installments to be subsequently processed according to the following options: a. The client pays the installments within a maximum period of 2024/05/15, without charging the borrower any interest, returns, or fees during this period. b. Distributing the deferred installments over the life of the loan. c. Deferring the installments to the end of the loan term. d. Using the Murabaha product in Islamic banks to schedule these installments.
Article (3)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions and apply them from the date of their issuance.
Issued in Ramallah, on the date: 07/02/2024 AD
Dr. Firas Malham Governor
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Postal code: P6160675 | Postal code: P6160675 Tel: +970 2 2415251 | Tel: +970 2 2415251 Fax: +970 2 2415310 | Fax: +970 2 2415310 info@pma.ps