Regulatory Alerts2021-01-01
Palestine Monetary Authority Instructions No. 2 of 2021 Concerning Classification of Loan and Financing Portfolios and Provisioning
The Palestine Monetary Authority issued Instructions No. 2 of 2021 to regulate the classification of loan and financing portfolios and the formation of provisions for all licensed specialized lending institutions. The document mandates specific provisioning percentages for non-performing loans based on delinquency periods, requires the suspension of revenue recognition for overdue accounts, and establishes strict criteria for loan restructuring, write-offs, and collateral acceptance. It repeals previous related instructions and grants institutions a three-month compliance period to align their operations with these new regulatory standards.
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