Palestinian PM signs deal with Gaza banks to disburse reconstruction money

Ramallah: Palestinian Prime Minister Salam Fayyad says local banks have agreed to disburse reconstruction money directly to residents of the Gaza Strip whose property was damaged during Israel's recent offensive there.

He says the commercial banks in Gaza will also handle funding for repairs to roads and other infrastructure hit in 23 days of fighting between Israeli troops and the militant Hamas movement, which rules Gaza.

Total damage has been estimated at over $2 billion.

The mechanism effectively bypasses Hamas, which is listed as a terror organization by the United States and the European Union and is boycotted by major international aid donors.

Thursday's agreement lays the groundwork for a proposal Fayyad will detail at a donor conference in Cairo next month.