Regulatory Alerts2018-01-01
Instructions No. (53) of 2018 Concerning the Classification of Credit Facilities, Provisions, and Accepted Collateral
The Palestine Monetary Authority issued Instructions No. (53) of 2018 to amend the collateral acceptance ratios for credit facilities, specifically targeting vehicles, machinery, and equipment for provision calculation purposes. The directive establishes tiered acceptance percentages based on the duration since seizure, reducing collateral valuation from 50% to 25% for vehicles and from 70% to 35% for machinery over a four-year period, contingent upon valid insurance and registered security interests. All conflicting prior provisions are repealed, and the updated rules take immediate effect upon issuance to ensure accurate risk provisioning across licensed banks.
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