Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (109/2016)

To all lending institutions operating in Palestine Date: Thursday, June 16, 2016

Subject: Amendment to Instructions No. 2016/5 Regarding Housing Loans and Real Estate Financing

Further to the Palestine Monetary Authority's Instructions No. (2016/5) dated June 6, 2016, concerning the regulation of housing loans and mortgages, and with reference to Article (6), Clause (3) of the Instructions, please be advised of the amendment to the article text as follows:

"Banks and specialized lending institutions may grant residential financing or a second mortgage to the same borrower, based on the provisions of Article (3), with a financing ratio exceeding 40% of the property's appraised value in the case of joint loans where one of the partners does not currently hold residential financing or a mortgage."

Accordingly, lending institution management is requested to disseminate this circular to the concerned parties, as the amendment shall take effect from its date.

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Market Conduct Department
Palestine Monetary Authority

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