Palestine Monetary Authority Instructs Banks to Postpone Deduction of Repayments of Civil Servants’ Bank Loan
Ramallah – Palestine Monetary Authority issues new instructions to banks to postpone deduction of repayments of bank loans of civil servants, rescheduling the repayments, or giving temporary overdraft facilities. These instructions are against the backdrop of recent irregular and incomplete payment of civil servants’ salaries, according to Palestine Monetary Authority.
The instructions also consider the current circumstance of the civil servants. They are the outcome of the continuous meetings with the banking sector since the start of the civil servants’ salary payment crisis. Palestine Monetary Authority also instructs banks about the potential of giving civil servants temporary overdraft facilities, allow borrowers among civil servant clients to postpone a number of loan repayments to a date agreed by and between the borrower and the bank.
Palestine Monetary Authority’s instructions to banks also address the potentiality of rescheduling loans during loan life or after that as agreed by borrower and bank, and not to request additional collaterals for any of the two potential options. Moreover, Palestine Monetary Authority’s circular note to banks with the instructions requires that banks do not charge delay fees or commissions or fines. The cost shall be limited to interest rate on the original loan, which entails small cost paid by the borrower. The civil servant borrowers who wish not to benefit from these options of postponing repayment of loans shall be subject to deduction instructions to be issued by Palestine Monetary Authority once the Government decides the percentage of the civil servants’ salaries that shall be paid next month, according to Palestine Monetary Authority.