Governor of the PMA, Mr. Azzam Shawwa, signed Memoranda of Understanding (MoUs) with five private-sector companies at PMA headquarters in Ramallah for the provision of the Unified Query System service. These companies can now utilize the system which comprises a database that provides relevant credit and demographic information concerning borrowers and their guarantors, individuals and corporations, as well as their credit scoring on the bounced checks system. The MoUs were signed with Mr. Adly Al- Natsheh, representing As-Salam Investment Group, Mr, Yaqoub Abu Hadwan, representing Goodluck Purchase Solutions for Lease Company, Mr. Harb Al-Raheb representing Palestine Motors Company, Mr. Ayman Sinokrot representing Arab Leasing Company and Mr. Mohammad Sbeih representing Gargour Company – Mercedes Benz.
PMA Governor emphasized that the signing of the MoUs with private-sector companies is aimed at strengthening their position and their investment capabilities and protecting them from liquidity or solvency issues. Such MoUs are part of PMA efforts intended to ensure the soundness and steadfastness of the banking business and its supervision; to underpin banking stability and foster economic growth in Palestine.
Shawwa explained that, while observing the principle of banking secrecy, these MoUs enable companies to assess the creditworthiness of the customers who conduct business on the basis of forward sales using checks for a future maturity date. Thus, these companies can make a better-informed decision which eventually helps them to mitigate and avert credit risks.
From their side, managers of the private companies that are signatories to MoUs have commended PMA’s efforts to develop and improve the banking environment by engaging private sector companies with the system that seeks to protect and preserve private sector companies and their achievements.