Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (81/2015)

To all lending institutions operating in Palestine

Date: Wednesday, May 20, 2015

Subject: Credit Report – Developed Version III

Further to Palestine Monetary Authority Circular No. (2014/183) dated 17/12/2014 regarding the developmental provisions of the credit information system, which includes additional disclosures made in the Credit Report concerning data for certain public and private companies (court rulings, Al-Watania Mobile Company, Akram Sebtani & Co.), we wish to highlight the following:

1. Disclosure of buyer data for Al-Watania Mobile Company applies to individuals with outstanding invoice payments of 2,000 Shekels (two thousand Shekels) or more, and to companies/institutions with outstanding payments of 15,000 Shekels (fifteen thousand Shekels) or more.

2. Disclosure of data for counterparties dealing with Akram Sebtani & Co. applies to all counterparties who obtained goods in exchange for post-dated checks paid in monthly installments.

3. Court rulings are limited only to those related to banking cases where one of the parties is a banking institution or a specialized lending institution.

Accordingly, please be advised that the aforementioned data will not be subject to the credit evaluation process under the borrower classification system. The assessment of risks surrounding the new data is left to the institution's management until the disclosure of data for all other economic sectors, with which memoranda of understanding are planned to be signed this year, is completed.

Regarding the calculation of the Debt Burden Ratio (DBR), all lending institutions are required, effective immediately, to consider the existing private sector debt burden on borrowers and incorporate it into the ratio calculation. This aims to manage the risks of overindebtedness, protect banking product consumers, and ensure the repayment of obligations according to contract terms.

Please disseminate this circular to credit officers in the departments and branches to take note and be fully aware of its contents.

Public Relations and Market Discipline Department Palestine Monetary Authority

---

Ramallah - Palestine PO. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | +970 2 2409922: Fax | +970 2 2415250: Phone | P.O. Box 452 - Ramallah - Palestine Gaza - Palestine PO Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | +970 8 2844487: Fax | +970 8 2825292: Phone | P.O. Box 4026 - Gaza - Palestine Email: info@pma.ps | info@pma.ps: Email www.pma.ps