Business | Banking
Israel urged to transfer funds to Gaza banks
The office of International Mideast envoy Tony Blair says the Gaza Strip's banks are on the verge of collapse, according to a memo obtained on Sunday.
- Agencies
- Published: 23:28 October 13, 2008
Occupied Jerusalem: The office of International Mideast envoy Tony Blair says the Gaza Strip's banks are on the verge of collapse, according to a memo obtained on Sunday.
In the letter to Israel's defence ministry, Blair's office says Israel must funnel some 100 million shekels, or about $28 million (Dh103 million), into Gaza each month to keep Gaza's 45 bank branches afloat. The Israeli shekel is Gaza's main currency.
Without the cash, it says the Palestinian National Authority will not be able to pay the salaries of thousands of civil servants and Gaza's black market and money launderers will thrive.
Gaza's cash crunch is unrelated to the global financial turmoil that has rocked world markets over the past month.
Israel is concerned that money transferred to Gaza will end up in the hands of Hamas fighters.
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