PMA Issues Special Circular on Cheque Clearing in Gaza

The Palestine Monetary Authority issued a special circular to define the methods of approval for cheque collection through the clearance house in the Gaza Strip in the event of a ceasefire being announced. The circular clarifies procedures for cheque collection and bank settlement by the due date as from the beginning of the Israeli assault. The first five days of clearance will handle only cheques with insufficient funds, followed by the presentation of cheques according to their due dates, divided into several clearance sessions to give sufficient time for branch managers, cheque drawers and beneficiaries to arrange conditions and avoid a liquidity crisis.

The PMA reiterated that previous circulars issued at the beginning of assault (regarding a delay in charging interest on cheques with insufficient funds from all client accounts) should be observed. The PMA continues to suspend the use of client classification (applicable to individuals and companies) with regard to cheques drawn on insufficient funds until further notice.

The circular takes into account the conditions faced by Gaza residents in an attempt to ease the burden of the assault and to facilitate the work of merchants and businessmen when normal life resumes.