The Monetary Authority Delays Loan Installment Deductions in Gaza Strip

SadaNews: The Governor of the Monetary Authority issued new instructions to banks today, Sunday, mandating the postponement of loan installment collections from individual borrowers in the Gaza Strip until the end of this year. These instructions stem from the deep responsibility the banking sector has in light of the painful humanitarian reality faced by families in the area.

The new instructions specify the postponement of installment deductions for individual borrowers while the unjust war continues. This is an extension of previous instructions that halted loan installment collections since the war began 20 months ago, reflecting the Monetary Authority's understanding of the citizens' need for liquidity amid rising prices, inflation, and unemployment reaching unprecedented levels.

The total size of the loan portfolio in the Gaza Strip is approximately one billion dollars, and the suspension of installment collections over the past 20 months has resulted in significant losses for banks, in addition to other operational losses directly attributed to the war. In this regard, the Governor of the Monetary Authority, Mr. Yahya Shanar, emphasized that he has been working over the past months to mobilize external funding sources to compensate banks for part of their losses while simultaneously assisting borrowers from the Gaza Strip in light of the suffering from killing, hunger, and destruction. He noted that these efforts will continue as they have not yet yielded the desired results.

Governor Shanar clarified that the Palestinian banking sector will remain committed to the law and a custodian of depositors' funds. In this context, a package of exceptional measures taken by the Monetary Authority throughout the months of the war has been launched to alleviate the harsh humanitarian and economic repercussions, responding to the impacts of the most severe crisis facing the Palestinian people.

He indicated that today's instructions include the gradual resumption of installment payments starting from January 2026, deducting 25% of the installment amount, and not exceeding 50% of the salary by the second half of the same year.

Governor Shanar called for the urgent need to stop the destructive war on our people, emphasizing the pressing need to devise plans for relief and reconstruction and to mobilize the necessary funding as soon as possible.