It Is A War
Bank Hapoalim ordered to postpone break with GazaBank of Israel orders Hapoalim to hold off on implementing decision, pending PMO finding a solution to Strip's imminent cash flew problem
Avi Shauli
Published: 10.24.07, 19:28 / Israel MoneyThe Bank of Israel on Wednesday ordered Bank Hapoalim to postpone its planned financial break with the Gaza Strip.
Bank Hapoalim decided to cut all financial ties with the Strip in late September, following the security cabinet's decision to declare Gaza a "hostile entity".
Hapoalim and Discount are the only two Israeli banks still working with the Palestinian Authority. Both decided to break with the Gaza Strip – where the risks to the banks' personnel, as well as the fear funds might find their way to terror groups, have proven not to be cost effective – not with the West Bank, but Discount's management has announced it is also reconsidering its ties with the West Bank.
The Israeli Shekel is the major currency used in Gaza and West Bank commerce; should both banks cut their ties with the Strip, it would create a cash-flow problem and cause significant harm to the Palestinian economy.
Following Hapoalim and Discount's decision, the Prime Minister's Office and the Bank of Israel have begun looking into alternative solutions to keeping up currency levels in Gaza.
Among the solutions under advisement are using the Postal Bank, using foreign banks which have local branches in the Palestinian Authority, converting the Shekel into Egyptian pound and possibly transferring funds through Egyptian banks.
The Bank of Israel ordered Hapoalim to wait at least two months before implementing its decision.
This article high lights the problem with the leadership in Israel.
They refuse to view the conflict with the Palestinians as a war.
They view it as a minor problem that can be solved with a bunch of diplomats over cocktails.
The conflict with the Palestinians is war and in war you must destroy things , kill people and make the civilian population suffer to the point where they loose the desire to support the war.
Israel must sever all contact with the Palestinians of Gaza, no money in or out, no more gasoline, electricity,water or food must be sold to the Palestinians of Gaza and we must keep up bombing pressure on the terrorist as they seek to launch their Qassam rockets against Israel.
