The UK has joined calls for Israel to renew banking ties in the West Bankfor at least 12 months, adding they are “fully satisfied that the Palestinian Authority has taken significant steps to counter the risks of terror financing.”
Israel’s indemnification of its banks for cross-border transactions with its Palestinian counterparts is set to expire on November 30.
A statement issued by the foreign ministers of the UK, France and Germany now claims failure to renew banking conditions could lead to the collapse of the Palestinian economy and destabilise the region.
On Oct. 31, the Israeli government granted a 30-day extension to the banking ties – the shortest yet – raising alarm among European nations and international observers.
The E3 foreign ministers statement said:”As the deadline of 30 November approaches, we therefore renew our call for Israel to immediately extend the indemnifications by at least one year, and for future extensions to be transparent, predictable and de-politicised.”
Referring to the one-month long extension to banking ties, it was added:” This disappointing decision prolongs uncertainty and endangers the Palestinian economy.
“Cutting off these banking ties, which Israel has a clear duty under the Paris Protocol to maintain, would create significant economic turmoil in the West Bank, jeopardising the security of Israel and the wider region.
“There is no technical basis on which to withhold a year-long extension.
“We are fully satisfied that the Palestinian Authority has taken significant steps to counter the risks of terror financing, and that financial institutions within the West Bank maintain adequate controls to manage these risks.
“The issue of cross-border payments must not be leveraged to undermine the Palestinian Authorities, and Israel must pursue policies which promote internal and external financial stability.”
The statement comes amid concern of possible renewed Israeli annexation plans for the West Bank.
Far-right Finance Minister Bezalel Smotrich had earlier this month ordered preparations for the annexation of the occupied West Bank ahead of US President-elect Donald Trump taking office in January 2025.
Smotrich voiced his hope that the new administration in Washington will recognise Israel’s push for “sovereignty” over the occupied territory.
