Regulatory Alerts2025-01-01
Instructions No. 2 of 2025 Amending Instructions No. 2 of 2021 on Loan Portfolio Classification and Provisioning
The Palestine Monetary Authority issued Instructions No. 2 of 2025 to amend the classification and provisioning rules for specialized lending institutions' loan portfolios. The directive updates the thresholds for non-performing loans to 181-270 days (25% provision) and 271-360 days (50% provision), mandates the suspension of interest accrual after 181 days past due, and requires adherence to IFRS 9 for write-offs. Additionally, it prohibits the reversal of provisions without prior approval and establishes immediate enforcement from the date of issuance.
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