Press Release

Taking into account the difficult conditions facing public employees and the banking system’s obligation to make special provision for the prevalent circumstances which caused partial employee salary delays for the past months, the PMA has issued a circular restricting all banks operating in Palestine to a maximum deduction of 50% of the value of the salary installment disbursed to the borrower-employee to cover his/her dues or the dues of other borrowers for whom he/she is guarantor, whilst offering the possibility to defer the full installment due by January 2015 to all public employees, following agreement between the two parties.   

Furthermore, the PMA required banks to collect a single salary transfer fee, regardless of the number of salary payments. The PMA also required banks to scrap fees charged for bounced cheques drawn on public employee accounts, provided that the total value of bounced cheques for an employee does not exceed that employee’s monthly wage.