E3 urge Smotrich to prevent collapse of Palestinian economy for ‘at least 12 months’

The United Kingdom, Germany and France on Thursday appealed to Israeli Finance Minister Bezalel Smotrich to extend a waiver allowing Israeli banks to do business with the Palestinian Authority, claiming Ramallah has taken “significant steps” to combat terrorist financing.

The E3 foreign ministers said they were “deeply concerned that Israel has yet to provide 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.”

Smotrich extended the indemnity waiver—which shields Israeli banks with business ties to their P.A. counterparts from anti-terror laws—by only one month on Oct. 31. The decision to extend the deal received backing from Israel’s Security Cabinet and came against the background of the U.S. presidential vote.  (Read More)