Latest news with #PalestinianEconomy
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
EU Tells Israel to Reverse Move to Cut Off Palestinian Banks
The EU on Wednesday urged Israel to undo a move by a far-right minister that threatens to paralyze Palestinian financial institutions. Finance minister Bezalel Smotrich announced Tuesday that Israel had cancelled a waiver allowing its banks to work with Palestinian ones. "The European Union is deeply concerned by the instruction by Israel's finance minister Smotrich to cancel the waiver on cooperation with Palestinian banks, which could cut them off from the Israeli financial system, devastate an already crippled Palestinian economy, and may lead to the collapse of the Palestinian Authority," EU spokesman Anouar El Anouni said. "The EU calls on Israel to revert this decision immediately and to refrain from any action that could lead to the collapse of the Palestinian authority." The Palestinian financial and banking system is dependent on the regular renewal of the Israeli waiver. It protects Israeli banks from potential legal action relating to transactions with their Palestinian counterparts, for instance in relation to 'financing terror'.
Al Arabiya
2 days ago
- Business
- Al Arabiya
EU tells Israel to reverse move to cut off Palestinian banks
The EU on Wednesday urged Israel to undo a move by a far-right minister that threatens to paralyze Palestinian financial institutions. Finance minister Bezalel Smotrich announced Tuesday that Israel had canceled a waiver allowing its banks to work with Palestinian ones. 'The European Union is deeply concerned by the instruction by Israel's finance minister Smotrich to cancel the waiver on cooperation with Palestinian banks, which could cut them off from the Israeli financial system, devastate an already crippled Palestinian economy, and may lead to the collapse of the Palestinian Authority,' EU spokesman Anouar El Anouni said. 'The EU calls on Israel to revert this decision immediately and to refrain from any action that could lead to the collapse of the Palestinian authority.' The Palestinian financial and banking system is dependent on the regular renewal of the Israeli waiver. It protects Israeli banks from potential legal action relating to transactions with their Palestinian counterparts, for instance in relation to financing terror.
Al Jazeera
2 days ago
- Business
- Al Jazeera
Israel's Smotrich could paralyse Palestinian economy by ending bank waiver
Israel's far-right finance minister, Bezalel Smotrich, has cancelled a waiver that Palestinian banks rely on to operate hours after five Western governments announced he faced sanctions, along with fellow ultra-nationalist Minister Itamar Ben-Gvir, for inciting violence against Palestinians in the occupied West Bank. Warnings have previously been raised that Israel's ending of the waiver could have devastating consequences for the Palestinian economy, which is dependent on the Israeli banking system as the Palestinian Authority (PA) does not have its own central bank or currency. 'Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yali Rothenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories,' Smotrich's office said in a statement on Tuesday, announcing the changes. The statement also directly linked Smotrich's decision to the PA's international advocacy against the establishment of illegal settlements in the occupied territories, which the minister's office described as the 'delegitimisation campaign against the State of Israel internationally'. Smotrich's decision to end the waiver came hours after Australia, Canada, New Zealand, Norway and the United Kingdom announced sanctions against him, as well as against Israeli National Security Minister Itamar Ben-Gvir for their 'incitement of violence' against Palestinians. The sanctions were not publicly linked to Smotrich's targeting of the PA, which governs parts of the occupied West Bank and represents Palestine at international forums, including the United Nations and the International Court of Justice (ICJ). However, Smotrich has a history of blaming the PA and punishing the 2.7 million Palestinians in the occupied West Bank in retaliation for international condemnation of Israel's illegal occupation. 'For every country that unilaterally recognises a Palestinian state, we will establish a settlement,' Smotrich said in July 2024, as he announced that Israel was 'recognising' five illegal Israeli settlements in the occupied West Bank after five more countries – Norway, Spain, Ireland, Armenia and Slovenia – announced they were recognising Palestinian statehood. He has also called for Israel to annex the occupied West Bank if the ICJ ruled that Israeli settlements are illegal. The end of the waiver could have a devastating impact on the finances of Palestinians, particularly in the occupied West Bank, which has already suffered multiple economic blows over the past two years. The overwhelming majority of exchanges in the West Bank and Gaza are in shekels, Israel's national currency, because Palestine is not allowed to have its own central bank or print its own currency, which means that Palestinian banks are reliant on Israeli banks to operate. But Israeli banks only continue to work with the Palestinian banks because of the government waiver, which protects them from potential legal action relating to transactions with their Palestinian counterparts. Israeli Prime Minister Benjamin Netanyahu's government has repeatedly threatened to end the waiver in the past, prompting rebukes from even Israel's closest allies. Janet Yellen, the United States Treasury Secretary in former President Joe Biden's administration, warned in May last year that 'to cut Palestinian banks from Israeli counterparts would create a humanitarian crisis'. In July, G7 countries urged Israel to 'take necessary action' to ensure the continuity of Palestinian financial systems. The UN has also warned that 'unilaterally cutting off Palestinian banks from the global banking system would be a violation of the fundamental principles of international law'. Under this pressure, the Israeli government has agreed to extend the waiver for short periods. However, far-right ministers like Smotrich and Ben-Gvir have always objected. After one vote in November last year, Ben-Gvir, who has been convicted in Israeli courts of possessing a 'terror' organisation's propaganda material and supporting a 'terror' organisation, wrote in a post on X that he had a 'principled objection' to indemnifying the Israeli banks. The Palestinian Authority should be completely cut off and 'collapsed', he said.
The National
2 days ago
- Business
- The National
Bezalel Smotrich blocks Israeli and Palestinian banks from working together
Israel's Finance Minister has cancelled a waiver allowing Israeli banks to work with Palestinian counterparts in a move that could paralyse the Palestinian economy. It comes hours after the UK and other countries imposed sanctions on him and another hard-line minister. Bezalel Smotrich had threatened in May last year to cut the vital connection between Israel and Palestinian banks in the occupied West Bank in retaliation for the recognition of the State of Palestine by three European countries. A statement issued by the Israeli Finance Minister's office on Wednesday read: "Against the backdrop of the Palestinian Authority's delegitimisation campaign against the State of Israel internationally, Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yali Rothenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories." The Palestinian financial and banking system is dependent on the regular renewal of the waiver. It protects Israeli banks from potential legal action relating to transactions with their Palestinian counterparts, for instance in relation to financing terrorism. The move comes after the UK, Canada, New Zealand and Norway announced sanctions on Mr Smotrich and Israeli Security Minister Itamar Ben-Gvir over links to "extremist violence and serious abuses of Palestinian human rights", the countries said in a joint statement. This is not the first time Mr Smotrich has sought to punish Palestinians for international condemnation of Israel's occupation and actions. After Norway, Ireland, Spain, Armenia and Slovenia announced their recognition of a Palestinian state last year, the minister announced Israel would recognise five illegal Israeli settlements in the occupied West Bank, a territory he has repeatedly called for his country to annex. In July, G7 countries urged Israel to "take necessary action" to ensure the continuity of Palestinian financial systems. It came after US Treasury Secretary Janet Yellen warned that "to cut Palestinian banks from Israeli counterparts would create a humanitarian crisis". The overwhelming majority of financial exchanges in the West Bank are in shekels, Israel's national currency, because the Palestinian Authority does not have a central bank under which it could print its own currency. But Israeli banks were continuing to work with Palestinian branches because of the waiver. The UN has warned that 'unilaterally cutting off Palestinian banks from the global banking system would be a violation of the fundamental principles of international law'. This pressure had until now pushed the Israeli government to continue agreeing to short extensions of the waiver, but far-right ministers such as Mr Smotrich and Mr Ben-Gvir have long objected.
Al Jazeera
2 days ago
- Business
- Al Jazeera
Israel's Smotrich could collapse Palestinian economy by ending bank waiver
Israel's far-right finance minister, Bezalel Smotrich, has cancelled a waiver that Palestinian banks rely on to operate hours after five Western governments announced he faced sanctions, along with fellow ultra-nationalist Minister Itamar Ben-Gvir, for inciting violence against Palestinians in the occupied West Bank. Warnings have previously been raised that Israel's ending of the waiver could have devastating consequences for the Palestinian economy, which is dependent on the Israeli banking system as the Palestinian Authority (PA) does not have its own central bank or currency. 'Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yali Rothenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories,' Smotrich's office said in a statement on Tuesday, announcing the changes. The statement also directly linked Smotrich's decision to the PA's international advocacy against the establishment of illegal settlements in the occupied territories, which the minister's office described as the 'delegitimisation campaign against the State of Israel internationally'. Smotrich's decision to end the waiver came hours after Australia, Canada, New Zealand, Norway and the United Kingdom announced sanctions against him, as well as against Israeli National Security Minister Itamar Ben-Gvir for their 'incitement of violence' against Palestinians. The sanctions were not publicly linked to Smotrich's targeting of the PA, which governs parts of the occupied West Bank and represents Palestine at international forums, including the United Nations and the International Court of Justice (ICJ). However, Smotrich has a history of blaming the PA and punishing the 2.7 million Palestinians in the occupied West Bank in retaliation for international condemnation of Israel's illegal occupation. 'For every country that unilaterally recognises a Palestinian state, we will establish a settlement,' Smotrich said in July 2024, as he announced that Israel was 'recognising' five illegal Israeli settlements in the occupied West Bank after five more countries – Norway, Spain, Ireland, Armenia and Slovenia – announced they were recognising Palestinian statehood. He has also called for Israel to annex the occupied West Bank if the ICJ ruled that Israeli settlements are illegal. The end of the waiver could have a devastating impact on the finances of Palestinians, particularly in the occupied West Bank, which has already suffered multiple economic blows over the past two years. The overwhelming majority of exchanges in the West Bank and Gaza are in shekels, Israel's national currency, because Palestine is not allowed to have its own central bank or print its own currency, which means that Palestinian banks are reliant on Israeli banks to operate. But Israeli banks only continue to work with the Palestinian banks because of the government waiver, which protects them from potential legal action relating to transactions with their Palestinian counterparts. Israeli Prime Minister Benjamin Netanyahu's government has repeatedly threatened to end the waiver in the past, prompting rebukes from even Israel's closest allies. Janet Yellen, the United States Treasury Secretary in former President Joe Biden's administration, warned in May last year that 'to cut Palestinian banks from Israeli counterparts would create a humanitarian crisis'. In July, G7 countries urged Israel to 'take necessary action' to ensure the continuity of Palestinian financial systems. The UN has also warned that 'unilaterally cutting off Palestinian banks from the global banking system would be a violation of the fundamental principles of international law'. Under this pressure, the Israeli government has agreed to extend the waiver for short periods. However, far-right ministers like Smotrich and Ben-Gvir have always objected. After one vote in November last year, Ben-Gvir, who has been convicted in Israeli courts of possessing a 'terror' organisation's propaganda material and supporting a 'terror' organisation, wrote in a post on X that he had a 'principled objection' to indemnifying the Israeli banks. The Palestinian Authority should be completely cut off and 'collapsed', he said.
