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Last update - 19:08 25/09/2007
Bank Hapoalim to sever ties with Palestinian banks in Gaza
By Reuters

Bank Hapoalim, Israel's biggest bank, said on Tuesday it was severing business ties with Palestinian banks in the Gaza Strip, a step that could deepen economic hardship in the impoverished territory controlled by Hamas Islamists.

Israeli currency is used by Palestinian Authority Chairman Mahmoud Abbas' government in the West Bank to pay salaries to tens of thousands of its employees in the Gaza Strip, home to 1.5 million people.

A Palestinian banking official said Bank Hapoalim's move could force Gaza banks to shut down if other Israeli institutions follow suit and stop transferring shekel notes to them.

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"In light of the (Israeli) government's decision to declare the Gaza Strip hostile territory, Bank Hapoalim has decided to terminate its banking activity with banks and branches in the Gaza Strip," the Israeli bank said in a statement.

Israel announced last Wednesday it would treat Gaza as a "hostile territory" and reduce its fuel and power supplies to the area in response to rocket attacks by Palestinian militants.

It has yet to carry out any cuts and pledged to keep humanitarian aid flowing.

A Hapoalim spokeswoman said it would take several weeks for the bank to cease completely what she described as "minimal services" to Gaza's financial institutions.

Sami Abu Zuhri, a Hamas official, called the move "a grave decision" that would have a strong impact on life in the Gaza Strip.

"This would entail reducing economic activities between Gaza and Israel," said Naser Abdel-Karim, a Palestinian economist.

New shekels are also needed in Gaza to replace those leaving the territory to pay for imports, mainly from Israeli suppliers.

Hamas, which opposes Abbas's peace moves with Israel, took over the Gaza Strip by force in June.

Providing salaries to Abbas loyalists in the territory is part of a U.S.-led strategy to bolster the Western-backed leader and weaken Hamas.

But a Hamas force now guards armored cars that bring in shekels about once a month after the notes are transferred at a border crossing, raising questions in Israel over whether some of the funds were ending up in the hands of the organization.

The amount of currency transferred to Gaza since Hamas's takeover is disputed. Israeli officials said the August shipment totaled 400 million shekels.

The Palestinian Monetary Authority official said shipments over the past 35-40 days totaled about half that amount.

Israel Discount Bank, another main provider of shekels and services to Palestinian banks, said the issue of severing ties with Gaza was under discussion "but we have not reached a decision."

By formally defining Gaza as hostile, Israel could argue that it cannot be bound by international law to supply utilities and services to its 1.5 million people.

UN officials have challenged that contention. Israel withdrew troops and settlers in 2005 from the Gaza Strip but Palestinians say it is still occupied because Israel controls its air, land and sea borders.
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  1.   We Are About To Be Told This Is Another Example of Relentless Occ 15:27  |  dyinglikeflies 25/09/07
  2.   ...and 15:41  |  Omar 25/09/07
  3.   occupied? 16:18  |  Barry 25/09/07
  4.   To Omar 16:21  |  Abu Yusuf 25/09/07
  5.   OUCH!!!!THIS ONE IS GOING TO HURT. 16:39  |  Robert 25/09/07
  6.   One way to make them figure it out 16:42  |  Lynn 25/09/07
  7.   "palestinians"the most heavily subsidized population in the world 16:48  |  Ariel 25/09/07
  8.   They Never Should Have Done Business With Them In The First Place 16:49  |  Yishai Kohen 25/09/07
  9.   To abba yosef #4 17:05  |  Omar 25/09/07
  10.   Omar # 2 It`s An Economic Blockade 17:11  |  Jeff Northridge 25/09/07
  11.   # 2 "and" 17:18  |  BARUCH HASHEM 25/09/07
  12.   Cash flow. 17:21  |  Vital 25/09/07
  13.   # 3 OCCUPIED? 17:22  |  BARUCH HASHEM 25/09/07
  14.   To Jeff Nothridge 17:24  |  Omar 25/09/07
  15.   Dear Omar in Ramallah 17:33  |  SA 25/09/07
  16.   Omar 17:34  |  Daniel W 25/09/07
  17.   Omar, interesting math and facts you present 17:35  |  Richard S 25/09/07
  18.   Omar 17:37  |  Israeli 25/09/07
  19.   This could backfire 17:38  |  Jerusalem Shmuel 25/09/07
  20.   The the religious on in South Africa #11 17:43  |  Omar 25/09/07
  21.   To Omar 17:47  |  I Hate Stupidity 25/09/07
  22.   to SA in helzeliya 17:49  |  Omar 25/09/07
  23.   Omar 17:50  |  j10 25/09/07
  24.   Minimal Banking Services.???????? 17:51  |  Jack 25/09/07
  25.   Of course the UN would say Hamas is not hostile to Israel 17:55  |  Jon 25/09/07
  26.   Richard S in Toronto (i.e. not here) 17:55  |  Omar 25/09/07
  27.   omar 18:02  |  alan 25/09/07
  28.   The the stupidity hater in the UK 18:03  |  Omar 25/09/07
  29.   To J10 in the USA 18:07  |  Omar 25/09/07
  30.   Bank 18:08  |  Maerton 25/09/07
  31.   Shmuel, They Can Print All The "Money" They Want 18:11  |  dyinglikeflies 25/09/07
  32.   to Alan also in Toronto (i.e. also not here) 18:29  |  Omar 25/09/07
  33.   we will continue beating you until you say we are not beating you 18:35  |  Kevin 25/09/07
  34.   OMAR #1 18:36  |  JOJO 25/09/07
  35.   Islamista in GAZA shouldn`t have access to Israel institutions. 18:39  |  Vittorio 25/09/07
  36.   Bank Hapoalim. 18:42  |  David Nigel Braham 25/09/07
  37.   #3 - Barry 18:44  |  MichaelF 25/09/07
  38.   Omar has a typical islamic mentality:"Give-And nothing in return" 18:52  |  Vittorio 25/09/07
  39.   # 9 Omar 18:53  |  Lynn 25/09/07
  40.   LET THE IRANIANS TAKE OVER THE BANKING SYSTEM IN GAZA 18:54  |  HAL TRIPP 25/09/07
  41.   Omar: and here is wherE? Gaza or Ramallah? 18:55  |  Richard S 25/09/07
  42.   JOJO and Jewish ears 18:57  |  Omar 25/09/07
  43.   Omar vs the world 18:58  |  Jimmi G 25/09/07
  44.   Vittorio 19:11  |  Omar 25/09/07
  45.   Kevin # 33 19:15  |  ChanahS 25/09/07
  46.   omar 32 nice try but,,, 19:17  |  alan 25/09/07
  47.   Everyone like Omar 19:18  |  Howard 25/09/07
  48.   Jimmi G 19:22  |  Omar 25/09/07
  49.   OMAR 42 19:22  |  ChanahS 25/09/07
  50.   Chanah S - Hamas allowing attacks on Gaza Christians 19:26  |  Polybios 25/09/07
  51.   Omar 19:38  |  Margie in Tel Aviv 25/09/07
  52.   #46 Alan 19:40  |  Margie in Tel Aviv 25/09/07
  53.   alan in toronto 19:40  |  Omar 25/09/07
  54.   ChanahS 19:44  |  Omar 25/09/07
  55.   To Omar - sorry for that abuse you are taking here, its not right 19:47  |  thru-other-eyes 25/09/07
  56.   HAARETZ IS BANNING SOME POSTS 20:05  |  Mariano 25/09/07
  57.   #55 thru-other-eyes small addendum 20:21  |  thru-other-eyes 25/09/07
  58.   Margie in Tel Aviv 20:22  |  Omar 25/09/07
  59.   Omar # 14 The Definition of Occupation 20:32  |  Jeff Northridge 25/09/07
  60.   to "thru-other-eyes" 20:36  |  Omar 25/09/07
  61.   OMAR IS TOTALLY RIGHT 20:48  |  Mervat 25/09/07
  62.   To #60 Omar - we cant imagine 20:53  |  thru-other-eyes 25/09/07
  63.   what currency do palestinians use? 21:13  |  Ilia 25/09/07
  64.   thru other eyes - by what magic... 21:21  |  Polybios 25/09/07
  65.   Omar 21:22  |  Margie in Tel Aviv 25/09/07
  66.   Jeff N - the real occupation 21:30  |  Polybios 25/09/07
  67.   Omar .. you as in Palestinians .. not personal 21:31  |  SA 25/09/07
  68.   Omar # 54 21:42  |  ChanahS 25/09/07
  69.   #42..Omar 21:44  |  Nemesis 25/09/07
  70.   To Margie in Tel Aviv 21:48  |  Omar 25/09/07
  71.   Hopeless.... 21:54  |  thru-other-eyes 25/09/07
  72.   Omar "Collective Punishment" 22:01  |  Jeff Northridge 25/09/07
  73.   SA in Herzeilya 22:05  |  Omar 25/09/07
  74.   For Omar on the current situation 22:22  |  Ed 25/09/07
  75.   Mervat 22:37  |  Lavy 25/09/07
  76.   sever ties 22:39  |  Shmuelshachor 25/09/07
  77.   Mervat # 61 22:55  |  ChanahS 25/09/07
  78.   omar 53 23:31  |  alan 25/09/07
  79.   The Economic Screws Are Tightening 23:37  |  Jeff Northridge 25/09/07
  80.   Good move, close down all cooperation 00:29  |  Johnny 26/09/07
  81.   # 61 Mervat 01:19  |  Lynn 26/09/07
  82.   If I were an Arab 01:29