Regulatory Alerts2024-01-01
Instructions No. (2) of 2024 Amending Instructions No. (1) of 2024 Regarding the Credit Portfolio of Specialized Lending Institutions
The Palestine Monetary Authority issued Instructions No. (2) of 2024 to amend the credit portfolio regulations for specialized lending institutions. The amendments extend the deadline for deferring or waiving periodic installments for borrowers in Gaza until December 31, 2024, and mandate financial solvency assessments for similar requests in the West Bank by the same date. Additionally, the regulator requires quarterly detailed reports on loan portfolio management measures and updated risk classifications starting from the third quarter of 2024.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (2) of 2024
Regarding the Amendment of Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions
Based on the provisions of Decision No. (132) of 2011 on the Licensing and Supervision of Specialized Lending Institutions, and its amendments, particularly Articles No. (3) and (21) thereof, and after reviewing Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions, and in accordance with the powers vested in us, and in the public interest, we have issued the following Instructions:
Article (1)
Definitions
The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise:
The Original Instructions: Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions.
Article (2)
Amendment of Article (2) of the Original Instructions
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The text of Paragraph (1) is replaced with the following: "Deferral or non-deduction of periodic installments for borrowers residing in the Gaza Strip until 2024/12/31 without interest."
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The text of Paragraph (2) is replaced with the following: "Assessing the financial solvency of borrowers wishing to defer, reschedule, or structure periodic installments, whether directly or indirectly affected by current conditions in the West Bank, and making the appropriate decision regarding this, until 2024/12/31."
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The text of Paragraph (4) is replaced with the following: "Providing the Palestine Monetary Authority with a detailed quarterly report covering the measures applied to handle the loan and financing portfolio during the first seven working days of each quarter starting from the third quarter of the current year."
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A new paragraph bearing the number (4) bis is added, stipulating the following: "Taking all measures to ensure that preservation classifications reflect the financial status and fundamental risks in a timely manner in accordance with the provisions of Article No. (3) of the Original Instructions regarding continuous supervision and providing the financial impact and expected credit losses."
Article (3)
Amendment of Article (3) of the Original Instructions
The text of Paragraph (7) is replaced with the following: "Providing the Palestine Monetary Authority with a detailed quarterly report covering the measures taken regarding this and the impact resulting from the provisions of this Article, within the first seven working days of each quarter starting from the third quarter of the current year."
Article (4)
Implementation and Enforcement
All competent authorities must implement the provisions of these Instructions, each within its respective scope, and they shall apply from the date of their issuance.
Issued in Ramallah, on the date: 2024/07/02 AD
Dr. Firas Malham
Governor
(Signature)
Note:
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 | Postal code: P6160675
Postal Code: P6160675 | Tel: +970 2 2415251 | Fax: +970 2 2415310
www.pma.ps