E3 foreign ministers renew calls for the urgent extension of reciprocal banking arrangements by at least 12 months to prevent economic collapse in the Occupied Palestinian Territories.
Foreign ministers' statement:
The foreign ministers of the United Kingdom, France and Germany are deeply concerned that Israel has yet to provided assurances it will extend the indemnifications for essential correspondent banking relationships between Israeli and Palestinian banks for a minimum period of at least 12 months.
On October 31, the Israeli government renewed its indemnifications of Israeli banks for 30 days, the shortest extension to date. 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.
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.
