Regulatory Alerts2024-01-01
Instructions No. (2) of 2024 Amending Instructions No. (1) of 2024 Regarding the Credit Portfolio of Specialized Lending Institutions
The Palestine Monetary Authority issued Instructions No. (2) of 2024 to amend the credit portfolio regulations for specialized lending institutions, specifically extending debt relief measures for borrowers in Gaza until December 31, 2024. The directive mandates financial institutions to assess the solvency of borrowers in the West Bank for payment deferrals or restructuring and requires detailed quarterly reporting on these measures starting from the third quarter of 2024. These amendments ensure that loan classifications accurately reflect current financial risks and expected credit losses in compliance with ongoing monitoring requirements.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (2) of 2024
Regarding the Amendment of Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions
Based on the provisions of Decision No. (132) of 2011 on the Licensing and Supervision of Specialized Lending Institutions and its amendments, particularly Articles No. (3) and (21) thereof, and after reviewing Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions, and in accordance with the powers vested in us, and in the public interest, we have issued the following Instructions:
Article (1)
Definitions
The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise:
The Original Instructions: Instructions No. (1) of 2024 Concerning the Credit Portfolio of Specialized Lending Institutions.
Article (2)
Amendment of Article (2) of the Original Instructions
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The text of Paragraph (1) is replaced with the following: "Deferral or non-deduction of periodic installments for borrowers residing in the Gaza Strip until 2024/12/31 without interest."
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The text of Paragraph (2) is replaced with the following: "Assessing the financial solvency of borrowers wishing to defer, schedule, or structure periodic installments, whether directly or indirectly affected by current conditions in the West Bank, and taking the appropriate decision regarding this matter until 2024/12/31."
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The text of Paragraph (4) is replaced with the following: "Providing the Palestine Monetary Authority with a detailed quarterly report covering the measures applied to handle the loan and financing portfolio during the first seven working days of each quarter starting from the third quarter of the current year."
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A new paragraph bearing the number (4) bis is added, stating the following: "Taking all measures to ensure that provisioning classifications reflect the fundamental financial status and risks in a timely manner in accordance with the provisions of Article No. (3) of the Original Instructions concerning ongoing monitoring and providing the financial impact and expected credit losses."
Article (3)
Amendment of Article (3) of the Original Instructions
The text of Paragraph (7) is replaced with the following: "Providing the Palestine Monetary Authority with a detailed quarterly report covering the measures taken regarding this matter and the impact resulting from the provisions of this Article during the first seven working days of each quarter starting from the third quarter of the current year."
Article (4)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions, each within their respective jurisdiction, and they shall apply from the date of their issuance.
Issued in Ramallah, on date: 2024/07/02
Dr. Firas Malham
Governor
(Signature)
Note:
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 | Postal code: P6160675
Postal Code: P6160675 | Tel: +970 2 2415251 | Fax: +970 2 2415310
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