Regulatory Alerts2025-01-01
Instructions No. 1 of 2025 Regarding the Handling of Debt Maturities
The Palestine Monetary Authority issued Instructions No. 1 of 2025 to regulate debt maturity postponement and restructuring for Gaza residents and West Bank public sector employees. The mandate requires banks to defer repayment schedules from October 2023, cap interest on deferred amounts at 6M SOFR, and waive early settlement and restructuring fees while allowing debt burden ratios to exceed current limits by up to 10%. Borrowers retain a ten-day objection window to opt out of automatic postponement, triggering a two-week restructuring period and suspension of new collection deductions.
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