10/27/2024–|Last updated: 10/27/202407:18 PM (Mecca time)
US Treasury Secretary Janet Yellen and seven of her counterparts from America’s allies sent Israeli Prime Minister Benjamin Netanyahu a letter warning him that his far-right Finance Minister Bezalel Smotrich may be on the verge of causing the collapse of the Palestinian economy.
According to Axios, which viewed the letter, the ministers expressed their countries’ concern that the collapse of the banking system in the West Bank would have serious repercussions, including the fall of the Palestinian Authority and a security crisis threatening Israel.
The ministers fear that Smotrich will not allow the extension of the financial correspondence agreement between Israeli banks and the West Bank, which expires at the end of this month, as without this correspondence the Palestinian banking system could collapse.
In addition to Yellen, her counterparts from Japan, Canada, the European Union, the United Kingdom, the Netherlands, Australia and France signed the letter on October 25.
The letter stressed that the continuation of relations between Israeli and Palestinian banks is necessary “so that vital financial transactions, trade, and essential services can continue.”
The letter also called for the release of pending tax revenues and submitting them to the Palestinian Authority in full, as well as the reissuance of permits to Palestinian workers wherever security conditions permit.
According to the website, the Israeli Treasury Ministry and Netanyahu’s office did not immediately respond to the questions contained in the letter.
Smotrich – one of the most extreme politicians in the Israeli government – presented a number of demands to Palestinian banks to prevent illicit financing “pertaining to financing the families of Palestinian martyrs and prisoners.”
The administration of US President Joe Biden informed Israel last week that it had decided that Palestinian banks had met the conditions set by Smotrich.
The Israeli Security Cabinet is likely to discuss this issue at a meeting on Sunday evening.
On Friday, the finance ministers and heads of central banks in the G7 countries ended their meetings in Washington.
