Regulatory Alerts2023-01-01
Instructions No. (15) of 2023 Regarding the Sustainability Fund (+)
The Palestine Monetary Authority issued Instructions No. 15 of 2023 to establish a 500 million shekel Sustainability Fund (+) that channels liquidity into targeted economic sectors through five specific financing programs. The regulations mandate commercial and Islamic banks to direct credit exclusively to recovery, healthcare, agricultural, renewable energy, and other approved projects, subject to defined credit ceilings, repayment periods, and a 5% reducing interest rate. Banks are required to comply with strict eligibility criteria, maintain quarterly sector statistics, and report portfolio data monthly to ensure the financing directly supports sustainable development, production cycles, and employment while prohibiting allocations for personal loans, real estate, and non-operational activities.