PMA Postpones Loan Installment Collection in Gaza Strip

Today- Sunday: The PMA Governor issued new instructions to all banks, mandating the postponement of loan installment collections from individual borrowers in the Gaza Strip until the end of the current year. This directive reflects the banking sector’s deep sense of responsibility in light of the dire humanitarian situation affecting residents of the Strip.

The new instructions stipulate the continued postponement of loan installment collections for individual borrowers, in light of the ongoing unjust war. This directive builds on previous instructions issued at the outbreak of the conflict 20 months ago, which suspended loan collections as part of the PMA’s recognition of citizens’ urgent need for liquidity amid soaring prices, and the sharp rise in inflation and unemployment to unprecedented levels.

 The loan portfolio in the Gaza Strip amounts to approximately one billion US dollars. The suspension of loan installment collections over the past 20 months has resulted in substantial losses for banks, in addition to other operational losses directly caused by the war. In this context, His Excellency the PMA governor, Mr. Yahya Shunnar, emphasized that over the past several months, he has been working to secure an external source of funding to compensate banks for part of their losses, while also providing relief to borrowers in Gaza who continue to suffer from killing, starvation, and destruction. He noted that these efforts are ongoing, as they have not yet yielded the desired outcomes.

Governor Shunnar affirmed that the Palestinian banking sector remains committed to the rule of law and to safeguarding depositors’ funds. Within this framework, the exceptional measures introduced by the PMA throughout the months of war were designed to ease the humanitarian and economic burdens and to respond to the impact of the most severe crisis facing the Palestinian people.

The governor further explained that the newly issued instructions include a gradual resumption of loan repayments commencing in January 2026, with a 25% deduction of the monthly installment amount. By the second half of the same year, deductions will be capped at no more than 50% of the borrower’s salary.

Governor Shunnar called for an immediate end to the devastating war against the Palestinian people, stressing the urgent need to develop relief and reconstruction plans and to mobilize the required funding as soon as possible.