PMA and Student Loan Fund Sign Memorandum of Understanding on Unified Query System

Governor of the PMA, Dr Jihad Al Wazir, and the Minister of Education and Higher Education and Chairman of the Board of Loan Fund for the Undergraduate in Palestine, Dr Khawla Shakhshir, signed a Memorandum of understanding (MoU) by which the PMA authorizes the Fund to use the services of the Unified Credit System offered by the Credit Bureau.

The signing of the MoU falls within the framework of a joint PMA - Ministry policy to enable the Fund to duly fulfill the duties entrusted to it and to sustain its continuous work in support of needy students.

Dr Al Wazir said that the PMA is exerting efforts to expand the Credit Bureau base, which has a comprehensive database which provides credit and demographic information on borrowers, guarantors and their respective status with regards to the bounced cheques system; thereby help ensure the safety and stability of the banking operation and supervision.  

From her side, the Minister Shakhshir commended the cooperation of the PMA and appreciated its significant role in maintaining financial stability in Palestine. The Minister considered the signing of the MoU as a means to promote the development and advancement of non-banking financial institutions, such as the Fund, as well as to foster the effective accomplishment of their duties in a manner which is credit-risk free, thereby contributing to the national economy and specifically to the financial system.  

Noteworthy is that the Loan Fund for the Undergraduate in Palestine was established on 19 February 2001 with the aim of providing benevolent loans (qard hasan) to undergraduate students unable to pay their tuition. By doing so, the Fund helps students pursue their intermediate and university education, provided they pay off the loans in the form of monthly soft installments following their graduation and employment.    

It is worth mentioning that, during the past few years, the PMA has signed a number of MoUs with many private sector institutions to authorize them to make use of the unified query system which is one of many services offered by the Credit Bureau. The Bureau is supervised by the PMA and has received much praise from international organizations; most importantly the IMF.