Regulatory Alerts2015-01-01
Circular No. 15: Borrower Guarantee for Personal Facilities
The Palestine Monetary Authority issued Circular No. 15/2015 to mandate that banks must not report borrowers as guarantors for their own personal facilities, as this practice violates legal loan obligations and distorts credit data. The circular requires immediate correction of previously misreported borrower-guarantor relationships in the Credit Information System (Sijili) to ensure accurate borrower classification. Banks are instructed to enforce strict compliance across all relevant departments, with the Authority reserving the right to take legal action against non-compliance to safeguard data integrity.
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