The Israeli largest bank "Hapoalim" announced yesterday it will sever its remaining ties with the Palestinian banks in Gaza Strip at a time when a spokesperson for Israeli Discount Bank said it considers its activities in Gaza Strip but no decision has been taken yet whether it will continue its dealings with the Palestinian banks. Informed sources said the step taken by Hapoalim would deepen the economic crisis facing the residents in Gaza Strip which is controlled by Hamas. The Palestinian government in the West Bank uses NIS to pay salaries of dozens of thousands of its employees in Gaza Strip. A Palestinian banking official said the step of Hapoalim would force the banks in Gaza Strip to close if other Israeli institutions took a similar decision and stopped transferring NIS to its banks.

Palestinian economist Nasr Abdul Kareem said this will result in reduction of economic activities between Gaza Strip and Israel. There is a need in Gaza Strip for the Israeli currency to pay for imports, mainly from Israeli exporters.

In Gaza, Fawzi Barhoum, Hamas spokesperson, said the decision is part of the collective punishment measures by Israel against the Palestinian people. It is a systemic plan implemented at a fast rate through the siege, closure, causing political and economic crises and health crisis in order to transform the Palestinian political cause into a problem of daily life sufferings and needs. He continued: Hamas holds the international community responsible for all environment, health and humanitarian crises because of the Israeli measures and the American blessing. Sami Abu Zuhri said the step will have its strong impact on life in Gaza Strip.

Published at Al Quds NewsPapers on September 26, 2007