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2020-01-01

Palestine Monetary Authority Measures to Mitigate the Effects of the Health Crisis

The Palestine Monetary Authority issued Instructions No. (2020/4) to mitigate the economic impact of the COVID-19 health crisis by mandating banks to postpone borrower installments for four to six months, waive electronic banking and ATM fees for six months, and restrict new checkbook issuances. The directive further requires financial institutions to direct credit toward SMEs, startups, and the health sector, maintain full employee salaries, and apply a special classification for affected clients under the returned checks system. Additionally, the PMA will supply necessary overnight liquidity to banks during emergencies, continuously reassess these measures, and encourage borrowers to continue regular payments where financially feasible.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (2020/4)

Date: Sunday, March 15, 2020

Subject: PMA Measures to Mitigate the Effects of the Health Crisis

Based on the President's decision to declare a state of emergency in Palestine, and given the emergency health conditions resulting from the spread of the coronavirus (COVID-19) and the potential impact on various economic conditions, and with the aim of mitigating the potential economic effects of the crisis on economic sectors, particularly tourism, hotels, and small and medium-sized enterprises (SMEs), and to facilitate matters for citizens and borrowers under the current circumstances, the Palestine Monetary Authority has decided the following:

  1. Continue providing banking services to our people to ensure the continuity of the commercial and economic cycle, aiming to provide essential goods and services to citizens throughout the crisis period.

  2. Postpone monthly/periodic installments for all borrowers for the next four months, renewable.

  3. Postpone monthly/periodic installments for loans in the tourism and hotel sector for the next six months, renewable.

  4. Postpone the repayment of revolving credits and due withdrawals during the next four months, renewable.

  5. Banks are prohibited from collecting any fees, commissions, or additional interest on postponed installments.

  6. The payment of dues for projects and commercial loans shall continue against checks upon receipt of payments and incoming remittances.

  7. Borrowers who wish may continue to pay periodic installments as usual.

  8. Extend credit card limits and limits granted to customers, SMEs, and individual clients affected by economic conditions.

  9. Direct new credit to SMEs and startups, and grant temporary credit limits to customers to help maintain the continuity of the economic cycle.

  1. Provide direct credit to the health services sector due to its direct impact on enabling the government and private sector to combat the epidemic.

  2. Banks are committed to waiving commissions and fees for electronic banking and ATM services for the next six months, renewable.

  3. Banks are committed to directing amounts allocated for corporate social responsibility to support the health services sector and contribute to limiting the spread of the epidemic.

  4. Reduce the number of checkbooks issued to customers, especially individuals, to the lowest possible level.

  5. Banks are committed to paying the full salaries of all their employees.

  6. The PMA will apply the classification of SMEs, customers, and individuals affected by economic conditions to the returned checks system for the next four months.

  7. The PMA will provide the necessary overnight liquidity to assist banks in emergency situations.

These instructions take effect from the date of issuance, and these instructions will be continuously reassessed throughout the coming period.

For further details and communication, banks may contact the Executive Director of Supervision and the Executive Director of Financial Stability regarding any field developments around the clock.

We wish our people complete health and well-being, and we pray to God to protect Palestine, our economy, and the banking sector.

AZAM AL-SHAWA
Governor

Office Ramallah and Al-Bireh - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Tel
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Tel
www.pma.ps

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