Regulatory Alerts2016-01-01
Circular No. 109/2016: Amendment to Instructions No. 5-2016 Regarding Housing Loans and Real Estate Financing
The Palestine Monetary Authority issued Circular No. 109/2016 to amend Instructions No. 2016/5 governing housing loans and real estate financing. The revision authorizes banks and specialized lenders to extend residential financing or a second mortgage to the same borrower, permitting a financing ratio above 40% of the appraised property value for joint loans where one partner holds no existing housing finance or mortgage. Institutions must circulate this directive to relevant staff, with the amendment becoming effective immediately upon publication.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (109/2016)
To all lending institutions operating in Palestine
Date: Thursday, June 16, 2016
Subject: Amendment to Instructions No. 2016/5 Regarding Housing Loans and Real Estate Financing
Further to the Palestine Monetary Authority's Instructions No. (2016/5) dated June 6, 2016, concerning the regulation of housing loans and mortgages, and with reference to Article (6), Clause (3) of the Instructions, please be advised of the amendment to the article text as follows:
"Banks and specialized lending institutions may grant residential financing or a second mortgage to the same borrower, based on the provisions of Article (3), with a financing ratio exceeding 40% of the property's appraised value in the case of joint loans where one of the partners does not currently hold residential financing or a mortgage."
Accordingly, lending institution management is requested to disseminate this circular to the concerned parties, as the amendment shall take effect from its date.
Market Conduct Department
Palestine Monetary Authority
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487
Email: info@pma.ps
www.pma.ps