Regulatory Alerts2023-01-01
Instructions No. 13 of 2023 Regarding Dealing with Liquidity Shortage in the National Economy
The Palestine Monetary Authority issued Instructions No. 13 of 2023 to mandate licensed Palestinian banks to implement immediate liquidity relief measures for employees and businesses affected by the current economic crisis. The directives require banks to offer temporary advances, reschedule or restructure existing loan installments without additional fees, and cap interest rates at a maximum of 3% declining for delayed salary cases, while also introducing emergency financing products for individuals, SMEs, and crisis-affected sectors. Additionally, the Authority establishes a lender-of-last-resort facility for solvent banks, limiting emergency liquidity to 180 days and requiring new product designs to be completed within two weeks of the instructions' issuance.