Regulatory Alerts2025-01-01
Circular No. 31 European Investment Bank Loan
The Palestine Monetary Authority has issued Circular No. 31/2025 requiring all Palestinian banks to indicate their interest and expected allocation in a 400 million euro European Investment Bank loan. Banks must specify whether their share will strengthen financing sources or support capital, and submit this information within one week of the circular's date. The Authority will approve applications based on each bank's risk profile, capital compliance, and fulfillment of contractual financing requirements.
[Logo of the Palestine Monetary Authority]
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Circular No. (31/2025) To all banks operating in Palestine Date: Monday, 21 April 2025
Subject: European Investment Bank Loan
In line with the Palestine Monetary Authority's efforts to strengthen financing sources for the Palestinian banking sector, we are in the process of securing a loan from the European Investment Bank amounting to 400 million euros. The loan aims to provide additional long-term financing sources that can be relied upon for funding small and medium-sized enterprises (SMEs) and economic activities, in accordance with the loan's terms. Additionally, a portion of the financing will be used to support capital through eligible supporting loans.
Based on the above, you are requested to inform us of your interest in obtaining a share of the aforementioned loan, specifying the expected share and whether it is for strengthening financing sources or supporting capital. This should be submitted within a maximum period of one week from the date hereof. Please note that you will subsequently be provided with the cost and terms for utilizing the financing.
The Palestine Monetary Authority bases its approval of submitted applications on the bank's risk profile and its compliance with the PMA's capital requirements, as well as the fulfillment of contractual financing requirements.
[Signature] Palestine Monetary Authority
www.pma.ps Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Postal Code: P6160675 | Phone: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps