Regulatory Alerts2025-01-01
Instructions No. 1 of 2025 Regarding the Handling of Debt Maturity Dates
The Palestine Monetary Authority issued Instructions No. 1 of 2025 to regulate the restructuring of debts for specialized lending institutions in the Gaza Strip. The directive mandates the deferral of repayment schedules for existing loans and requires the issuance of new financing facilities with interest rates capped at the 6-month SOFR rate and zero fees. Borrowers are granted a ten-day window to object to these changes, during which institutions must pause restructuring and negotiate repayment plans aligned with the borrower's capacity to pay.
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