ICSPR Deducting Loan Installments Amid Gaza’s Humanitarian Catastrophe Undermines Social Stability and Violates Principles of Justice
Date: April 14, 2026
Press Release
ICSPR: Deducting Loan Installments Amid Gaza’s Humanitarian Catastrophe Undermines Social Stability and Violates Principles of Justice
The International Commission to Support Palestinian Rights (ICSPR) expresses its deep concern and astonishment regarding the decision of the Palestinian Monetary Authority and banks operating in the Palestinian territories—particularly in the Gaza Strip to proceed with deducting loan installments from borrowers. In cases where balances are insufficient, deductions are being made from guarantors, a measure that risks creating serious social tensions and disputes within Palestinian society.
ICSPR affirms that this decision comes amid an unprecedented catastrophic context marked by the ongoing Israeli crimes and the suffocating blockade, which have resulted in a comprehensive economic collapse and a sharp rise in unemployment and poverty rates. These conditions have stripped the vast majority of borrowers of any real ability to meet their financial obligations.
According to data available to the Commission, a significant proportion of these loans were granted for housing purposes or to finance small businesses sectors that have been systematically and extensively destroyed by Israeli forces. Affected individuals have not received any compensation or viable economic alternatives that would enable them to rebuild their lives or repay their debts.
In this context, ICSPR stresses that continuing to enforce such coercive financial measures under the current exceptional circumstances constitutes a breach of principles of justice and fairness, and contradicts the legal and moral obligations to protect affected populations and ensure a minimum level of social security.
Accordingly, ICSPR calls on the Palestinian Monetary Authority and all operating banks to:
- Immediately halt all loan deduction procedures;
- Suspend financial claims against borrowers and guarantors;
- Adopt exceptional financial policies that take into account the current humanitarian and economic conditions in the Gaza Strip.
ICSPR also urges that any resumption of deductions be linked to objective conditions, foremost among them compensation for those affected and the revival of the labor market. At a minimum, such measures should be postponed until the end of the current year to mitigate ongoing social and economic repercussions.
ICSPR emphasizes that safeguarding social cohesion and strengthening the resilience of citizens must be a top priority for all official and financial institutions, particularly during this critical stage faced by the Palestinian people.
