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2020-01-01

Palestine Monetary Authority Measures to Mitigate the Effects of the Health Crisis

The Palestine Monetary Authority issued Instruction No. (2020/5) to mitigate the economic impact of the COVID-19 health crisis on small and medium enterprises and the banking sector. The directive mandates a four-month postponement of monthly installments for all borrowers and a six-month postponement for tourism and hotel sector loans, while prohibiting lenders from charging fees or interest on deferred payments. Additionally, the instruction requires continued lending to essential sectors, directs new credit to SMEs and startups, guarantees full employee salary payments by lending institutions, and establishes round-the-clock coordination channels with financial stability officials.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instruction No. (2020/5)

To All Specialized Lending Institutions

Date: Sunday, March 15, 2020

Subject: Palestine Monetary Authority Measures to Mitigate the Effects of the Health Crisis

Based on the President's decision to declare a state of emergency in Palestine, and given the emergency health conditions resulting from the spread of the coronavirus (COVID-19) and its potential impact on various economic conditions, and with the aim of mitigating the potential economic effects of the crisis on the small and medium-sized enterprises sector and the banking sector, and to facilitate matters for citizens and borrowers under the current circumstances, the Palestine Monetary Authority has decided the following:

  1. Continue providing lending services to our people and small enterprises to ensure the continuity of the commercial and economic cycle, with the aim of providing essential goods and services to citizens throughout the crisis period.

  2. Postpone monthly/periodic installments for all borrowers for the next four months, subject to extension.

  3. Postpone monthly/periodic installments for loans in the tourism and hotel sector for the next six months, subject to extension.

  4. Lending institutions are prohibited from collecting any fees, commissions, or additional interest on postponed installments.

  5. Borrowers who wish may continue to pay periodic installments as usual.

  6. Direct new credit to small and medium-sized enterprises and startups to contribute to maintaining the continuity of the economic cycle.

  7. Provide direct credit to the health services sector due to its direct impact on enabling the private sector to confront the epidemic.

  8. Lending institutions are committed to paying the full salaries of all their employees.

www.pma.ps

Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Ramallah & Al-Bireh Governorate - Palestine P.O. Box
info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Tel
Gaza - Palestine P.O. Box 4026
Gaza - Palestine P.O. Box
Fax: +970 8 2844487 | Fax | Tel: +970 8 2822713 | Tel

  1. The Palestine Monetary Authority will work in cooperation with banks to provide the necessary funding to ensure the continued operations of specialized lending institutions and their services to the public.

These instructions take effect from the date of their issuance, and will be continuously reassessed throughout the coming period.

For further details and communication, lending institutions may contact the Executive Director of Supervision and the Executive Director of Financial Stability regarding any field developments around the clock.

Azzam Al-Shawa
Governor

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