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.
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Circular No. (252/2023) To all banks operating in Palestine Date: Thursday, December 14, 2023
Subject: Structuring or Rescheduling of Financings Funded by the Istidama Fund.
Given the prevailing current conditions and the impact on beneficiaries of the Istidama Fund by the current economic situation, or the likelihood that they will be affected, all banks operating in Palestine must comply with the following:
- Not increasing interest rates or profit rates above what they were prior to the restructuring or rescheduling, upon signing a credit restructuring or rescheduling agreement.
- It is prohibited to collect any commissions or fees on a credit restructuring or rescheduling agreement.
- Re-crediting any amounts, including interest or profits, commissions, and fees, that were deducted from customers' accounts since October 25, 2023, for financings that have been rescheduled or restructured.
Supervisory Group Palestine Monetary Authority