The Financial Times reported – citing what it described as informed sources – that the British Barclays Bank has prepared plans to withdraw from Israeli government bond auctions, and this comes under pressure from activists opposed to the ongoing Israeli aggression on the Gaza Strip for more than 10 months.
Barclays is one of seven foreign lenders helping the Israeli government sell debt, and it appears to be preparing to leave the Israeli market in an attempt to calm criticism and public protests over its relationship with Israel.
The newspaper added in its report that “Barclays informed Israeli officials that it intends to continue to play the role of a major broker for government securities, working alongside other global banks such as Goldman Sachs, JP Morgan Chase and Deutsche Bank.”
The report quoted Yali Rotenberg, the accountant general of the Israeli Ministry of Finance, as saying: “We appreciate the bank’s statement confirming its continued commitment to the State of Israel.”
Barclays Bank confirmed that it is “preparing a response in relation to Israel’s latest request for tenders for its next bond sale,” adding that “the date for that response is next week.”
In May, British bank Barclays said it would not invest in companies that supply weapons to Israel for use in Gaza, after pro-Palestinian activists targeted one of its branches in the City of London.
The bank also faces criticism for providing financial services to defense companies that produce weapons and equipment used by the Israeli occupation.
Popular protests
Over the past period, activists have expanded their activity against the bank, as they have drawn red paint signs, symbolizing the bloodshed in Gaza, on the facades of the bank’s buildings and branches.
“We were asked why we invest in nine defense companies that supply Israel with equipment, but this is a misunderstanding of what we do,” the bank said on its website at the time.
The bank added: “We trade in shares of listed companies in response to client instructions or requests, and this may result in us holding shares. We do not make investments for Barclays, and Barclays is not a ‘shareholder’ or ‘investor’ in that sense in relation to these companies.”
Barclays said in May that its role as a bank was to provide financial services to defence companies, including US, UK and European companies that supply products to NATO and other allies.
The bank said it “will continue to monitor developments in Gaza closely” in light of the civilian death toll and targeting of aid workers in the area.
Barclays’ review of its business in Israel comes amid broader economic and commercial fallout from the war.
In June, Colombia announced it would suspend coal exports to Israel in protest over the conflict. A month ago, Turkey said it would halt trade with Israel until it allowed an “uninterrupted and adequate” flow of humanitarian aid to Gaza.
The fighting has also weighed on Israel’s credit rating, with Fitch Ratings announcing Monday that it had downgraded the country’s debt to A from A+, citing geopolitical risks from the war. Moody’s and Standard & Poor’s have taken similar steps.
