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.
Palestine Monetary Authority
Circular No. (142/2012)
To all banks operating in Palestine
Date: Sunday, October 21, 2012
Subject: Granting Facilities to Local Authorities
Attached for your information is the letter from His Excellency the Minister of Local Government No. (5432/30/4) dated 02/10/2012 regarding the prohibition of granting any banking facilities to local authorities except after obtaining prior approval from the Minister of Local Government. It is further noted that if a borrowing transaction requires a guarantee from the Executive Authority, approval from the Council of Ministers must be obtained in accordance with Article (21) of the Local Authorities Law No. (1) of 1997. Please take the necessary steps to comply with the aforementioned requirements.
Supervision and Inspection Department Palestine Monetary Authority
Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps