Regulatory Alerts2016-01-01
Circular No. 108 Amending Instructions No. 5-2016 Regarding Housing Loans and Real Estate Financing
The Palestine Monetary Authority issued Circular No. 108/2016 to amend Instructions No. 2016/5 governing housing loans and real estate financing. The revision authorizes banks and specialized lenders to extend housing financing or a second mortgage to the same borrower at a ratio exceeding 40% of the property's appraised value, applicable to joint loans where one partner holds no existing housing financing or mortgage. Bank management must promptly circulate this amendment to all relevant departments for immediate implementation.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (108/2016)
To all banks operating in Palestine
Date: Thursday, June 16, 2016
Subject: Amendment of Instructions No. 2016/5 Regarding Housing Loans and Real Estate Financing
Further to the Palestine Monetary Authority Instructions No. (2016/5) dated 6/6/2016, concerning the regulation of housing loans and mortgages, and with reference to Article (6), Clause (3) of the Instructions, please be informed that the text of the Article is amended as follows:
"Banks and specialized lending institutions may grant housing financing or a second mortgage to the same borrower, in accordance with the provisions of Article (3), and with a financing ratio exceeding 40% of the appraised value of the property, in the case of joint loans where one of the partners does not hold existing housing financing or a mortgage."
Accordingly, bank administrations are requested to disseminate this to the concerned parties, as the amendment shall take effect from its date.
Market Contraction Department
Palestine Monetary Authority
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487
Email: info@pma.ps