Regulatory Alerts2023-01-01
PMA Instructions No. 14 of 2023 on Salary Advance Loans for Public Sector Employees
The Palestine Monetary Authority issued Instructions No. 14 of 2023 requiring all licensed banks in Palestine to grant temporary salary advance loans to public sector employees at a maximum 50% deduction rate, with the Ministry of Finance covering the interest or return. The regulations mandate that loans be disbursed based on official financial statements, capped at a 3% reducing daily interest rate, and repaid upon salary transfer. These provisions apply to all licensed banking institutions as of the instruction's issuance date on November 27, 2023.
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