Government Borrowing from Banks reaches Limit, says Monetary Authority
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RAMALLAH, June 11, 2012 (WAFA) - Government borrowing from the Palestinian
banking system has reached the maximum tolerable risk limit as per the sound
banking principles, governor of the Palestine Monetary Authority Jihad
Al-Wazir said Monday.

He noted that banks operating in Palestine have increased their lending to
the government in the last two months by over $300 million, which makes
banks unable to increase their lending in the coming period unless actual
repayments from donor countries are made.

Wazir said in a statement that the Palestine Monetary Authority, sort of
central bank, has taken in the last few years several supervisory measures
aimed at enhancing and strengthening the efficiency of the banking sector
and its ability to absorb shocks in anticipation of regional and
international political and economic developments.

He added that “the Palestine Monetary Authority strives consistently to
maintain the strength of banks' financial positions, especially in view of
the regional and the European financial crisis development.”