Regulatory Alerts2023-01-01
Circular No. 252 Structuring or Rescheduling of Financings Funded by the Istidama Fund
The Palestine Monetary Authority issued Circular No. 252/2023 requiring all banks operating in Palestine to restructure or reschedule Istidama Fund financings due to prevailing economic conditions. The directive prohibits banks from increasing interest or profit rates above pre-restructuring levels, bans all commissions and fees on such agreements, and mandates the re-crediting of all previously deducted amounts to customer accounts since October 25, 2023. This measure directly alleviates financial pressure on fund beneficiaries by ensuring cost-free credit restructuring and restoring withheld funds.
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