Assistance outline for customers dealing with the ramifications of the “Iron Swords” war

• Mortgages – for first homes and housing upgraders only - regardless of amount
• Consumer credit – cumulative up to NIS 100,000
• Business credit – up to NIS 2 million (for a business with annual revenue of up to NIS 25 million)
• Negative balances (overdraft) in a household account up to NIS 10,000 – negative balance that is part of a credit facility approved by the bank.

The assistance in the program is divided into two customer groups:

First-degree customers are individuals who live within 30 km from the Gaza Strip or the owners of businesses that operate within that range, people who have been evacuated from their homes by an official state entity as of November 7, 2023 and who live in one of the communities that appear on the list published on the Bank of Israel website, those who have been mobilized through an emergency call-up, and those who are first-degree relatives of someone killed, kidnapped, or missing.

Second-degree customers are all other bank customers.

In addition, leniencies in business credit will be provided for businesses with revenue of up to NIS 25 million per year.

With regard to fees, the leniencies in this program apply to individuals and small businesses as defined in the Banking (Service to the Customer) (Fees) Rules, 5768–2008.

The period for requesting a loan repayment deferral is until March 31, 2024. At the end of this period, the need for extending the request period will be examined.

The program applies to a business that operates within 30 km of the Gaza Strip, or that operates in one of the communities that were evacuated by an official government entity as of November 7, 2023, and that appear on the lists published on the Bank of Israel website, even if the business owner lives outside of that range. This is in relation to the business credit, if any, provided to the business owner, and provided that it is not a loan in commercial cooperation with a third party.

First-degree customers are eligible to defer loan repayments[1] in three activity segments (mortgages, consumer credit, and business credit) for three months without any interest or fee charges.

In addition, first-degree customers will be exempt from fee charges for transactions made as part of account management, other than transactions in foreign exchange, securities, foreign trade, or diamonds (as detailed in the footnote)[2] for a period of three months.

Furthermore, individuals who live within 30 km from the Gaza Strip, people who have been evacuated from their homes by an official state entity as of November 7, 2023 and who live in one of the communities that appear on the lists published on the Bank of Israel website, those who have been mobilized through an emergency call-up, and those who are first-degree relatives of someone killed, kidnapped, or missing, who, prior to the publication of the program, had a debt balance (overdraft) in their household current account will not be charged interest on the negative balance in their account up to a negative balance of NIS 10,000.[3] Beyond that amount, the customer will be charged interest on the outstanding debt in accordance with the interest brackets set out in his account management agreement.

Second-degree customers will be given the option of deferring loan repayments[4] for three months, with the deferred payments bearing interest that shall not exceed the interest rate in the loan contract. The payments will be added to the end of the loan period. The deferral will not incur fee payments.

[1] Mortgages – for first homes and housing upgraders only, regardless of amount; Consumer credit – cumulative up to NIS 100,000; Business credit – up to NIS 2 million for a business with annual revenue of up to NIS 25 million), not including loans in commercial cooperation with a third party.

[2] The fees that appear in the following sections, with regard to the banks, in the Banking (Service to the Customer)(Fees) Rules, 5768-2008:

Section 1 – Current Account (in its entirety)

Section 2 – Information, notices, and warnings (in its entirety)

Section 3 – Credit (in its entirety)

Section 6 – Credit cards (in its entirety, excluding fees – (7) foreign exchange transactions, (8) foreign exchange withdrawals abroad, (9) foreign exchange purchases from abroad)

Section 9 – Fees for handling estates and wills, fees for withdrawing cash (from a remote ATM and by a prepaid card).

[3] The exemption from interest charges on the debt balance of up to NIS 10,000 does not apply to reservists and those called up under the emergency mobilization.

[4] Mortgages – relating to a first home or housing upgraders, regardless of amount; Consumer credit – cumulative up to NIS 100,000; Business credit – up to NIS 2 million, for businesses with annual revenue of up to NIS 25 million, excluding loans in commercial cooperation with a third party.

The benefit is not implemented automatically, because adjustments are necessary at the customer level that require the customer’s explicit consent. Furthermore, the bank is not aware that some people belong to certain groups. As such, the customer must sometimes make a declaration or provide appropriate documentation in accordance with the bank’s decision. With regard to small companies, documentation will be requested in accordance with the characteristics published by the bank.

Customers who wish to defer payments and are eligible for these benefits may contact the bank through their website, application, telephone call center, or branch, and submit a request to defer loan repayments. In parallel, the banks have been instructed to initiate contact with first-degree customers who meet the conditions of the program, insofar as they are aware of this, and to direct their attention to the leniencies to which they are entitled subject to the program.

The program applies to the population that was evacuated by an official state agency, as of November 7, 2023 and that lives in one of the communities that appear on the lists published on the Bank of Israel website.

The program with regard to first-degree customers applies only to people who live within a range of 30 km from the Gaza Strip, people who were evacuated from their homes by an official government entity as of November 7, 2023, and that live in one of the communities appearing on the lists published on the Bank of Israel website, or those who own a business located within that range, or that is in one of the communities that was evacuated by an official government entity as of November 7, 2023 and that appear on the lists published on the Bank of Israel website. If something has happened to the property due to the war, you must check the compensation mechanism for war damages that are supposed to be provided by the government. It should be noted that a customer whose mortgage is for a property within the 30 km range from Gaza but who does not live there is included in the group of second-degree customers, and can obtain a response under the conditions that apply to that group.

The banks’ emergency call centers have been updated with the details of the program, which will take effect no later than October 31, 2023. An updated list of call center phone numbers appears on the Bank of Israel website.

The program applies to a customer whose checking account has been restricted pursuant to the Checks Without Cover Law, 5741–1981.