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[Wall Street Journal] Bob Davis - Former British Prime Minister Tony Blair and the heads of the International Monetary Fund and World Bank urged Israel's prime minister to ease Israeli pressure on the Palestinian banking system, arguing that Israel's policies "undermine the viability of the Palestinian banking sector as a whole, greatly inhibit Palestinian-Israeli trade and divert resources away from the banking system toward unregulated informal channels." At issue is a tug-of-war over cash transfers from Israel to Gaza. Gaza's economy runs on shekels, the currency of Israel. Recently, Israel approved a cash shipment of 100 million shekels ($25.5 million) into Gaza, averting a banking crisis for the time being. Without the necessary cash, Palestinian bankers feared a run on their banks. Israeli banks, fearful of being sued for abetting terrorist financing, are also looking to end their banking relationship with Palestinian banks. If that were to occur, Palestinian banks would have a tough time handling payments from abroad. 2008-12-19 06:00:00Full Article
Israel Urged to Ease Pressure on Palestinian Banks
[Wall Street Journal] Bob Davis - Former British Prime Minister Tony Blair and the heads of the International Monetary Fund and World Bank urged Israel's prime minister to ease Israeli pressure on the Palestinian banking system, arguing that Israel's policies "undermine the viability of the Palestinian banking sector as a whole, greatly inhibit Palestinian-Israeli trade and divert resources away from the banking system toward unregulated informal channels." At issue is a tug-of-war over cash transfers from Israel to Gaza. Gaza's economy runs on shekels, the currency of Israel. Recently, Israel approved a cash shipment of 100 million shekels ($25.5 million) into Gaza, averting a banking crisis for the time being. Without the necessary cash, Palestinian bankers feared a run on their banks. Israeli banks, fearful of being sued for abetting terrorist financing, are also looking to end their banking relationship with Palestinian banks. If that were to occur, Palestinian banks would have a tough time handling payments from abroad. 2008-12-19 06:00:00Full Article
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