Government's Borrowing from the Banking System Reaches the Maximum Limit

Dr. Jihad Al-Wazir, Governor of the Palestine Monetary Authority, declared that the Government's borrowing  from the Palestinian Banking System has reached the  maximum tolerable risks limits as per the sound banking principles.

Dr. Al-Wazir noted that banks operating in Palestine have increased their lending to the government in the last two months by over 300 million US dollars, which makes banks unable to increase their lending in the coming period unless actual repayments  from donor countries are made. 

Dr. Al-Wazir confirmed that the Palestine Monetary Authority in the last few years have taken several supervisory measures aimed at enhancing and strengthing the efficiency of the banking sector and its ability to  absorb shocks in anticipation of the Regional & International political and economic developments. He added that the Palestine Monetary Authority strives consistently to maintain the strength of banks' financial positions especially in view of the regional and  the European financial crisis development.