Subscribe to Print Edition | Tue., December 16, 2008 Kislev 19, 5769 | | Israel Time: 01:59 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate GA 2008 Travel Week's End Anglo File

Gaza banks at risk of collapse unless Israel pumps more cash, diplomats warn By Avi Issacharoff, Haaretz Correspondent and AP Tags: israel news Representatives of the Quartet, the World Bank and the International Monetary Fund are asking Prime Minister Ehud Olmert to continue sending funds to the Gaza Strip in a bid to avoid the collapse of the banking system there. Suspending the money transfer and cutting ties between banks in Israel and Gaza would undermine the sustainability of the Palestinian banking sector, wrote Quartet envoy Tony Blair, World Bank president Robert Zoellick and IMF managing director Dominique Strauss-Kahn in a letter to Olmert, which was sent Friday. The letter, a copy of which has reached Haaretz, states the signatories understand and respect Israel's legitimate security concerns, but says a joint analysis conducted by the three institutions indicates those steps would also drastically reduce Israeli-Palestinian trade and divert resources from the banks to the unregulated black market, which is already active in the Strip. Advertisement Foreign Minister Tzipi Livni met with officials from the Finance Ministry and Shin Bet security service on Sunday to reexamine Israel's transfer of funds to Gaza and the continued cooperation between banks in Israel and Gaza. Defense Minister Ehud Barak last week authorized the transfer of NIS 100 million to Gaza from Palestinian banks in the West Bank. Jihad al-Wazir, head of the Palestinian Monetary Authority, said the money shipment would help but added that Gazans needed a regular supply of cash. The Israeli approval "does not resolve the overall problem of regular inflow of liquidity," he said. The letter's signatories, meanwhile, said the additional limits on cash flow imposed on Palestinian civilians in Gaza would be a serious blow to their ability to acquire the basic necessities. They said a decision by Israeli banks to cut clearing ties with Palestinian banks would force Israeli and Palestinian merchants to carry out cash transactions or use indirect financial means, which would impair the effectiveness of Palestinian banking institutions that have invested a lot in a well-regulated financial system and imposed strict laws prohibiting money laundering and funding terrorism. A break in financial ties, the signatories said, would also put a stop to several regional and international investments in the Palestinian banking sector. Bookmark to del.icio.us   Israel's KKK The desire to march in Umm al-Fahm has nothing to do with protest. A courageous throw Gadhafi's daughter awards the reporter who threw his shoes at President Bush.   1.   Good 04:07  |  Eugenio 15/12/08   2.   This is Tzipi`s opportunity to attempt to bring back one soldier 06:15  |  Genuine Tosefta 15/12/08   3.   Gilad Shalit Must First Be Freed Before Considering Any Requests 07:01  |  Laguna Geno 15/12/08   4.   Pumping money into Gaza. 07:02  |  Stephen. 15/12/08   5.   Response letter 07:40  |  Daniel 15/12/08   6.   to Stephen 08:34  |  Freddy 15/12/08   7.   MORE CASH FOR MORE WEAPONS 09:37  |  Alka Seltzer 15/12/08   8.   Give Shalit back first and stop rockets 09:38  |  Elly 15/12/08   9.   lets stop worrying about our enemy Gaza banks are not our peoblem 10:11  |  zionist forever 15/12/08   10.   Gaza banks should collapse... Israel doesn`t need 10:20  |  Ben 15/12/08   11.   Free Gilad, and then we talk 10:26  |  Nadav 15/12/08   12.   Disengagement from terror and not normal relations with terror 10:33  |  Joseph.E 15/12/08   13.   No to terror arab economy 10:35  |  Joseph.E 15/12/08   14.   What money is this? any money at all 10:47  |  x-ray 15/12/08   15.   Gaza banks 12:11  |  Lightworker. 15/12/08   16.   Bank directors and executives are pariahs in the West so they co 12:34  |  Absolute Sweden 15/12/08   17.   Last week 13:11  |  Elianah 15/12/08   18.   We should pump artillery shells into Gaza, not money 13:55  |  Yerushalmi 15/12/08

Read & React Iraqi police detain local reporter who threw shoes at Bush during farewell Baghdad visit Responses: 118 Benjamin Hartman: Israel's merry band of Klansmen, the far-right Responses: 69 Mass welcome awaits over 200 freed Palestinian prisoners in Ramallah Responses: 58 Far-right Dutch MP: There is no moderate Islam Responses: 79 Umm al-Fahm Mayor: Rightists will never march through our city Responses: 79 Yehuda Ben-Meir: We must not give into Hamas demands Responses: 35 More Headlines 22:36 Hezbollah chief calls on Arab, Muslim world to help lift Gaza blockade 22:12 UN: Israel's expulsion of human rights envoy is 'dangerous' 01:15 Report: Elie Wiesel, Steven Spielberg among victims of Madoff affair 00:08 Netanyahu, Barak reject Livni invitation for political debate 00:16 Arabs across Mideast hail reporter who hurled shoes at Bush 00:13 Spate of mysterious infant deaths prompts health ministry investigation 20:36 Court restricts West Bank separation fence in ruling hailed as precedent 17:04 Abbas: Israel must free all 11,000 Palestinian prisoners 21:36 Rice cites Bush's peace initiative as best chance to end Mideast conflict 01:43 VIEWPOINT: Israel's merry band of Klansmen, the extreme right 15:55 Settler population growing three times faster than rest of Israel, study says 21:19 Barak to Austrian president: I'm not afraid of Gaza op, but I'm not rushing 21:06 Top Defense Ministry official: Gaza truce has no expiration date 17:01 El Al to operate direct flight to Brazil for first time in a decade 18:21 British PM urges Obama to make Mideast peace a top priority 11:44 'There is no moderate Islam,' says far-right Dutch legislator Geert Wilders 12:51 JEWISH WORLD / The Shas version of Obama's 'yes we can' Previous Editions Select Day 15 dec 14 dec 12 dec 11 dec 10 dec 09 dec 08 dec 07 dec 05 dec 04 dec 03 dec 02 dec

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