Based on the PCMA’s role in regulating, controlling and supervising the activities of non-banking financial institutions, including factoring activity, in order to ensure the provision of this type of financing, which will contribute to enhancing liquidity in the Palestinian capital market, and assist small and medium enterprises in obtaining appropriate financing to finance working capital, the PCMA has completed its activity to build the legislative environment that regulates this activity.
Major Developments:
Following the initiation of the development of the factoring activity project, in cooperation with the European Bank for Reconstruction and Development, and reaching a preliminary version of the draft law, several meetings were held, remotely, with the regional team (the office in Jordan and the office in Palestine) responsible for drafting the law in Arabic. The administration and the legal department of the PCMA participated in such meetings, where the draft law was discussed and certain amendments were made thereto. The experiences of the countries that issued the law (the United Arab Emirates) were taken into consideration. A final draft in an agreed upon version was reached that is compatible with local laws and capable of being implemented, which will be submitted to the PCMA’s Board of Directors.
