Regulatory Alerts2012-01-01
Circular No. 142 Granting Facilities to Local Authorities
The Palestine Monetary Authority mandates that all banks operating in Palestine must obtain prior approval from the Minister of Local Government before granting any banking facilities to local authorities. This directive enforces a Ministry of Local Government letter dated October 2, 2012, which strictly prohibits such financial accommodations without explicit ministerial consent. Additionally, banks must secure Council of Ministers approval for any borrowing transactions requiring an Executive Authority guarantee, in compliance with Article 21 of the Local Authorities Law No. 1 of 1997.
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