Regulatory Alerts2020-01-01
Instruction No. 22-2020 Regarding the Small and Medium Enterprises Financing Program
The Palestine Monetary Authority issued Instruction No. 22-2020 to establish a three-year financing program aimed at mitigating the economic impact of the COVID-19 pandemic on small and medium enterprises. The directive mandates licensed banks to provide working capital and operational expense financing to eligible, pre-crisis businesses across specified sectors, subject to credit assessments, capped loan amounts ranging from $10,000 to $250,000, and interest rates not exceeding 3% for borrowers. It further outlines strict eligibility criteria, reporting obligations, preferential 20% risk weighting for loans, and provisions for on-lending through specialized institutions while prohibiting misuse or duplicate participation.
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