Circular No. 145 Clarifications on Reporting Facilities Granted to Small and Medium Enterprises

Palestine Monetary Authority
Palestine Monetary Authority

Circular No. (145/2013)
To all banks operating in Palestine
Date: Tuesday, November 26, 2013

Subject: Clarifications Regarding the Reporting of Facilities Granted to Small and Medium Enterprises

Following our Circular No. (2013/113) issued on November 6, 2013, concerning the establishment of a dedicated database for facilities granted to small and medium enterprises, and in light of the field visits conducted at banks to monitor progress and take necessary measures to complete the project, the following clarifications address the inquiries and observations discussed during these visits:

• Reporting the Interest Rate and Interest Type for Guarantees and Credits
  For facilities classified as guarantees or credits (F006 and F008), and since no interest is collected on this type of facility, the interest rate field shall be reported as zero, while the interest type field shall be reported as (N/A).

• Reporting Non-Performing Facilities (NPL Stage)
  All fields comprising the demographic file for facilities granted to small and medium enterprises are mandatory. To address non-performing facilities (non-performing loans) where reporting all fields is difficult due to challenges in contacting borrowers, the mandatory status for loans classified as non-performing will be waived. Consequently, only the available information in the borrower's file shall be reported for non-performing facilities.

• Amendment to the Demographic File Structure
  The structure of the demographic file for facilities granted to small and medium enterprises (txt.file) has been amended as per the attachment, by adding field number (25) related to the legal action associated with the aforementioned item.

• Amendment to the Appendix

• Appendix No. (9), concerning the establishment's registration location, has been amended as per the attachment by adding two new options: "Ministry of Finance, Ministry of Transport" to the existing options.

• Addition of Appendix No. (14) concerning the legal action taken: "Regarding Legal Action (A), not referred to Legal Action (B)".

Accordingly, all banks are requested to adopt the attached clarifications and amendments and to continue compiling data on facilities granted to small and medium enterprises in compliance with the new amendments.

Public Relations and Market Officers 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 Ramallah - Al Bireh P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487