Regulatory Alerts2024-01-01
Circular No. 117 Installments of Loans and Financing for Public Sector Employees
The Palestine Monetary Authority issued Circular No. 117/2024 to all banks operating in Palestine, mandating strict compliance with regulations regarding loans and financing for public sector employees. The directive prohibits the deduction of amounts from public sector employee salaries in Gaza and caps deductions in the West Bank at 50% of the transferred salary or the monthly installment, whichever is lower. Banks are further required to refrain from any additional financial deductions and must refund any amounts withheld in violation of these instructions by the end of the business day.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Decision Issued by the Palestine Monetary Authority
Circular No. (117/2024)
To All Banks Operating in Palestine
Date: Wednesday, November 13, 2024
Subject: Installments of Loans and Financing for Public Sector Employees
Based on the provisions of Instruction No. (15) of 2024 regarding loans and financing for public sector employees, banks are requested, under penalty of liability, to fully comply with the following:
- Do not deduct any amounts from the salary payments of public sector employees and borrowers in Gaza.
- Do not exceed the deduction rate from the salaries of public sector employees in the West Bank to 50% of the transferred salary payment or the monthly installment amount, whichever is lower.
- Do not deduct and/or freeze any additional financial amounts other than those stated in item (2) above.
- Refund amounts that were deducted or frozen in violation of the instructions to the accounts of public employees, with a maximum deadline of the end of business today.
Supervision Group
Palestine Monetary Authority
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Postal code: P6160675 | Postal code: P6160675
Tel: +970 2 2415251 | Tel: +970 2 2415251
Fax: +970 2 2415310 | Fax: +970 2 2415310
info@pma.ps