Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (23) of 2020

Regarding the Deferral of Monthly/Periodic Installments During the Health Crisis Period

Based on the provisions of Decision-Law No. (9) of 2010 regarding Banks, particularly Articles (2), (21), (40), and (72) thereof, and after reviewing Instructions No. (4) of 2020 regarding the Palestine Monetary Authority's procedures to mitigate the impacts of the health crisis, and Instructions No. (2) of 2016 regarding Responsible Borrowing, and in pursuit of the public interest, we have issued the following Instructions:

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Article (1)

Repayment of Deferred Installments

1. The bank must provide its customers with the option to choose either of the following:
   a. Early repayment of installments deferred during the health crisis at any time without charging an early repayment fee. b. Spreading the value of deferred installments over the loan term, except as stated in Article (6), paragraph (5.2) of Instructions No. (2) of 2016 regarding Responsible Borrowing for individual customers.

2. The Islamic bank must grant its customers until 2021/12/31 to settle the value of deferred installments, unless the two parties agree otherwise.

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Article (2)

Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions within their respective jurisdictions, and they shall apply from the date of their issuance.

Issued in Ramallah on 2020/06/30 AD

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Financial Stability Group
Palestine Monetary Authority

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www.pma.ps

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