Regulatory Alerts2013-01-01
Circular No. 53: Developing and Enhancing Lending Opportunities for Small and Medium Enterprises
The Palestine Monetary Authority issued Circular No. 53 to implement recommendations from the 2013 Fourth Banking Conference by introducing incentive measures for small and medium enterprise (SME) lending. The directive exempts qualifying SMEs from the mandatory 10% cash down payment requirement for loans, provided the facilities are guaranteed by an approved local institution covering at least 60% of the debt and supported by a verified cash flow statement. Additionally, banks are exempted from maintaining a 1.5% risk reserve on these specific SME facilities, subject to quarterly reviews and strict adherence to the defined eligibility criteria.
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