Regulatory Alerts2019-01-01
Instructions No. 8 of 2019 Concerning the Amendment of Requirements and Guidelines for Applying International Financial Reporting Standard No. 9
The Palestine Monetary Authority issued Instructions No. 8 of 2019 to temporarily amend the regulatory requirements for applying International Financial Reporting Standard No. 9 (IFRS 9). The directive exempts public sector employees facing irregular salary payments due to government financial constraints from the standard 30-day past-due threshold for classifying credit risk as significantly increased under Stage Two, extending the applicable grace period to 60 days. These temporary provisions mandate compliance by all licensed Palestinian banks and remain effective for six months until January 1, 2020, after which regulations revert to the original 2018 instructions.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (08) 2019
Concerning the Amendment of Instructions No. (02) of 2018 Regarding the Requirements and Guidelines for Applying International Financial Reporting Standard No. "9"
Based on the provisions of the Decree-Law on Banks No. (9) of 2010, in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following instructions:
Article (1)
Scope of Application
The provisions of these instructions shall apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.
Article (2)
Significant Increase in Credit Risk "Stage Two"
Facilities for public sector employees affected by irregular salary payments resulting from the government's financial situation are exempted from the requirements of Paragraph (8) of Article (2) of Instructions No. (2) of 2018 regarding loans classified as having a significant increase in credit risk since initial recognition due to more than 30 days having passed since contractual payments were due. For this purpose, a 60-day period shall be applied instead of 30 days.
Article (3)
Implementation, Enactment, and Effectiveness
All competent authorities shall implement and apply the provisions of these instructions within their respective jurisdictions. These provisions shall remain in effect for a period of six months, ending on 2020/01/01. Thereafter, the situation shall revert to what was stipulated in Instructions No. (02) of 2018.
Issued in Ramallah on Wednesday, dated 2019/06/26
Supervision and Inspection Department
Palestine Monetary Authority
Note: Contact information in the lower sections
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Phone: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Phone: +970 8 2825713