Palestine Monetary Authority

Circular No. (2008/43)

To all banks operating in Palestine

Date: Tuesday, March 18, 2008

Subject: Clarifications Regarding Credit Information Service Instructions

Based on the meeting held at the Authority's headquarters on February 7, 2008, with officials from the credit facilities departments in the banking sector, and the consultations that emerged during and following it, as well as official correspondence received by the Authority or via telephone, the following outlines the disclosure mechanism for certain facility items in the monthly facility file:

1. Current Account (Debit/Credit)

The approved limit is disclosed according to the administrative approval (limit value), and the utilized balance item is shown as zero in this case, until the customer utilizes part or all of the limit again, at which point the utilized balance item will disclose the existing (used) balance as usual.

2. Transferred Salary Guarantees:

When the lending bank requires the transfer of guarantors' salaries to the loan account as collateral, this situation is handled as follows:

a. In the case of a single guarantor:
The facility data page discloses the code (SL) as collateral with a value equal to the guarantor's transferred monthly salary, and also discloses the code (PG) with the approved limit value, while ensuring the personal data of the guarantor with the transferred salary is disclosed in the personal guarantees section for resident and non-resident individuals.
b. In the case of multiple guarantors:
The facility data page discloses the code (SL) as collateral with a value equal to the average total of transferred salaries, while ensuring the personal data of the guarantors with transferred salaries is disclosed in the personal guarantees section for resident and non-resident individuals.

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 Ramallah - Al Bireh - P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487 www.pma.ps