Regulatory Alerts2024-01-01
Palestine Monetary Authority Instructions No. 5 of 2024 Amending Financial Cycle Continuity Instructions
The Palestine Monetary Authority issued Instructions No. 5 of 2024 to amend the Financial Cycle Continuity Instructions regarding credit portfolio management in the Gaza Strip. The directive postpones loan installment deductions for individual borrowers in Gaza until August 31, 2024, and mandates specific repayment options including interest-free settlement, loan term extension, or Islamic savings products. It also permits banks to deduct payments from corporate accounts in Gaza if balances exist, provided such actions do not hinder business operations.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (5) of 2024
Regarding the Amendment of Instructions on the Continuity of the National Economic Financial Cycle
Based on the provisions of Law No. (9) of 2010 concerning Banks, particularly Articles (40, 41, 72) thereof, and after reviewing Instructions No. (12) of 2023 concerning the Continuity of the National Economic Financial Cycle, and Instructions No. (1) of 2024 concerning the Amendment of Instructions No. (12) of 2023, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1)
Definitions
The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise:
Original Instructions: Instructions No. (12) of 2023 concerning the Continuity of the National Economic Financial Cycle.
Article (2)
Handling the Credit Portfolio Granted in the Gaza Strip
- The text of paragraph (1) of Article (4) of the Original Instructions is replaced with the following text:
"Postponement of deducting loan/financing installments for individual borrowers residing in the Gaza Strip from the date of issuance of the Original Instructions until 2024/08/31, with these installments to be subsequently processed according to the following options:
A- The client pays the installments within a maximum period of 2024/09/15 without charging any interest, returns, or fees during this period, and the bank may use any transferred payments from receivables to settle the due installments, and allow any individuals wishing to pay their due installments.
B- Distributing the postponed installments over the life of the loan/financing.
C- Postponing the installments to the end of the loan/financing life.
D- Using the savings product in Islamic banks to schedule these installments."
- A new paragraph numbered (5) bis is added to Article (4) in the Original Instructions stating the following:
"The bank may deduct and settle the due installments from the corporate sector and commercial projects in the Gaza Strip if balances are available in their accounts, provided that this action does not hinder the activity of these companies and projects, and the bank must maintain continuous communication with customers to identify their financing needs and schedule the debt according to the permitted conditions."
Article (3)
Implementation and Enforcement
All competent authorities must, each within their respective scope, implement the provisions of these Instructions and apply them from the date of their issuance.
Issued in Ramallah, on 2024/04/30
Dr. Firas Malham Governor
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 | Postal code: P6160675: الرمز البريدي