Regulatory Alerts2021-01-01
Added · Updated
Instructions No. (8) of 2021 Regarding the Sustainability Fund to Provide Financing for Economic Sectors
The Palestine Monetary Authority issued Instructions No. (8) of 2021 to establish a permanent Sustainability Fund that channels targeted financing to economic sectors, with priority given to micro, small, and very small enterprises, healthcare, e-learning, digital transformation, and post-crisis recovery initiatives. The directive mandates all licensed banks to implement specific lending programs under strict eligibility criteria, including a maximum 48-month repayment term with up to 12 months of grace, interest rate caps of 9% for specialized lenders, and prohibitions on charging additional commissions or altering subsidized rates. Furthermore, the instructions require all financed projects to be Palestinian-owned, operate exclusively within Palestine, and demonstrate a direct contribution to job creation or preservation.