The Monetary Authority Keeps the Discount Rate at 25% of Public Sector Employees' Salaries in the Gaza Strip

SadaNews - The Monetary Authority has issued new instructions to regulate the discount rates on the salaries of public sector employees in the Gaza Strip.

The instructions included organizing the mechanism for deducting loan installments so that the discount rate does not exceed 25% of the transferred salary amount or the value of the due installment, whichever is lower, instead of the 50% that was stipulated starting from the first of July 2026.

The instructions also mandated banks to maintain the value of loans granted to public sector employees in the Gaza Strip as of June 30, 2026, and not to impose any additional interest or profits on existing loans until full repayment.

The Monetary Authority confirmed that these instructions are part of its ongoing efforts to address exceptional economic conditions, aiming to organize the mechanism for deducting loan installments and financing granted to public sector employees in the Gaza Strip, in a manner that achieves balance and contributes to reducing their financial burdens and enabling them to meet their basic living needs, while at the same time maintaining the stability of the banking sector.

The Monetary Authority clarified that the portfolio of facilities granted to public sector employees in the Gaza Strip constitutes 65% of the credit portfolio in the Gaza Strip, reflecting the relative importance of this decision and affirming the Monetary Authority’s readiness to take regulatory measures that consider the exceptional circumstances the sector is going through.