Regulatory Alerts2024-01-01
Palestine Monetary Authority Instructions No. (2) of 2024 Regarding Granting Overdraft Limits to Borrowing Public Sector Employees
The Palestine Monetary Authority issued Instructions No. (2) of 2024 requiring licensed banks to grant overdraft limits to public sector employees to cover monthly installments from January through August 2024. Banks must also launch restructuring campaigns to reduce installment burdens to a maximum of 40% of net salary while prohibiting additional fees or interest rate increases on new agreements. The instructions specify pricing caps, exclusion criteria for employees with high salary deductions or joint loans, and procedures for handling objections and Islamic finance facilities.
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