Press release, published 09.12.2008
No.: 125/08
Closed banks in Gaza
Palestinian banks were forced to stay closed after the weekend as a result of Israeli restrictions on cash transfers to Gaza. The banks do not have enough cash to pay salaries and make other payments. In total, half a million people are being affected during the Muslim Eid festival.
“I am concerned about the restrictions Israel has imposed on cash transfers to Gaza,” said Foreign Minister Jonas Gahr Støre. “As a result about 77 000 public employees in Gaza did not receive their salaries as they were preparing to celebrate the important Muslim Eid festival. I fear that this will further exacerbate the economic and humanitarian situation, which is already extremely difficult. Norway, which chairs the AHLC international donor group for assistance to the Palestinians, expressed its concern to the Israeli authorities on Monday 8 December,” the Foreign Minister continued.
The banks in Gaza are now closed. The payment of salaries to public sector employees is one of the most important contributions to maintaining economic activity in an isolated Gaza.
“I call on the Israeli authorities to lift these restrictions immediately. I would like to underline the acute nature of the situation that has now been created,” said Mr Støre. “I fear that Israel’s conduct will undermine the Palestinian Government headed by Prime Minister Salam Fayyad, which enjoys broad support and confidence in the international community, and that it may, if anything, strengthen extremist groups.”
Although Gaza has been controlled by Hamas since June 2007, the Government in Ramallah has continued to pay its employees in Gaza.