Instructions No. ( ) of 2025 Regarding the Deduction of Loan and Financing Installments in the Gaza Strip

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Instructions No. ( ) of 2025 Regarding the Deduction of Loan and Financing Installments in the Gaza Strip

Pursuant to the provisions of Law Decree No. (9) of 2010 regarding Banks, particularly Articles (40 and 72) thereof, and Law Decree No. (3) of 2025 regarding the regulation of loan terms, installments, and financing lease payments, particularly Article (3) thereof, in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

Article (1) Objective and Scope of Application

1. The provisions of these Instructions aim to regulate the process of deducting loan and financing installments for debts in the Gaza Strip.
2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business.

Article (2) Handling Loan and Financing Installments in the Gaza Strip

The bank shall comply with the following regarding loans and financing for individuals residing in the Gaza Strip:

1. Postponing the deduction of loan and financing installments until December 31, 2025.
2. The collection of loan and financing installments shall commence starting from January 2026.
3. The deduction rate during the period from January to June 2026 shall be 25% of the installment or salary, whichever is lower.
4. The deduction rate starting from July 2026 shall be the full installment amount, not exceeding 50% of the transferred payment (salary).

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Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

5. Unpaid installments that have accumulated for borrowers from October 2023 until the end of the current year shall be transferred to the end of the loan and financing term without charging borrowers any interest during this period, and the bank may continue to accrue interest on loans and financings and record it in the suspended interest account.
6. Unpaid portions of installments shall be handled by transferring them to the end of the loan or financing term.

Article (3) Idle Balances

1. The bank may collect accumulated installments from accounts where the increased balance exceeds 50% of the amount of due installments.
2. The bank may collect loan and financing installments for borrowers residing outside the Gaza Strip who receive their salaries, as well as merchants and companies that continue to conduct commercial activities.

Article (4) Exemption from Application

Any bank wishing to do so may commence collecting loan installments starting from July 2025, provided it complies with the following:

1. Obtaining a board of directors resolution to commence installment deduction.
2. Publishing the bank's policy on handling loan installments in the Gaza Strip clearly on its official website and social media pages.
3. Not deducting more than 50% of the transferred payment under any circumstances.
4. Allowing borrowers to reschedule debts without requiring a down payment or any commissions/fees.
5. Not charging any additional interest on accumulated installments until full repayment.

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Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Article (5) Cancellation of Conflicting Provisions

All provisions conflicting with these Instructions are hereby repealed.

Article (6) Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions, each within its respective jurisdiction, and apply them starting from the date of issuance.

Issued in Ramallah, on: 13/07/2025 AD

Yahya Al-Shannar Governor

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Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 | Postal code: P6160675 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps