Regulatory Alerts2012-01-01
Circular No. 3 (2012) Disclosure of Housing and Mortgage Loans
The Palestine Monetary Authority issued Circular No. 3 (2012) to mandate strict accuracy in reporting the specific interest rate types applied to housing and mortgage loans. All lending institutions must now explicitly disclose the exact interest rate structure in their regulatory files precisely as defined in the signed borrower credit contracts. Non-compliance with this mandatory disclosure requirement will result in the imposition of statutory financial penalties.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (2012/3) To all lending institutions operating in Palestine Date: Wednesday, January 04, 2012
Subject: Disclosure of Housing and Mortgage Loans
With reference to our Circular No. (2011/67) dated 25/4/2011 concerning the demographic file structure for housing and mortgage loans, and based on the results of analyzing data specific to the housing and mortgage sector, inaccuracies have been identified in the disclosure of the type of interest rate applied to loans granted to this sector.
Accordingly, all institutions are required to exercise utmost precision in their disclosure files by disclosing the type of interest rate applied to the facility as per the credit contract signed with the borrower. Failure to do so will result in the imposition of fines in accordance with the law.
Director of Public Relations and Market Regulation 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 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