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G7 finance leaders to call on Israel to maintain Palestinian bank links

 
 US PRESIDENT Joe Biden and Secretary of State Antony Blinken attend a video meeting with G7 leaders to discuss the Iranian attack on Israel, at the White House on Sunday. (photo credit: The White House/Reuters)
US PRESIDENT Joe Biden and Secretary of State Antony Blinken attend a video meeting with G7 leaders to discuss the Iranian attack on Israel, at the White House on Sunday.
(photo credit: The White House/Reuters)

The G7 finance leaders also called for the removal or relaxation of other measures "that have negatively impacted commerce to avoid further exacerbating the economic situation in the West Bank."

G7 finance leaders will call on Israel to maintain correspondent banking links between Israeli and Palestinian banks to allow vital transactions, trade and services to continue, according to a draft joint statement seen by Reuters on Saturday.

The statement, to be released at the end of a Group of Seven finance ministers and central bank governors' meeting in northern Italy, also calls for Israel "to release withheld clearance revenues to the Palestinian Authority, in view of its urgent fiscal needs."

Worries over longterm impact

The statement echoes a warning on Thursday from US Treasury Secretary Janet Yellen, who said the failure to renew a soon-to-expire banking waiver would cut off a critical lifeline for the Palestinian territories amid a devastating conflict in Gaza.

US Treasury Secretary Janet Yellen testifies before a Senate Appropriations Financial Services and General Government Subcommittee hearing on President Biden's proposed budget request for the Department of the Treasury for fiscal year 2024, on Capitol Hill in Washington, US, March 22, 2023. (credit: REUTERS/Evelyn Hockstein/File Photo)
US Treasury Secretary Janet Yellen testifies before a Senate Appropriations Financial Services and General Government Subcommittee hearing on President Biden's proposed budget request for the Department of the Treasury for fiscal year 2024, on Capitol Hill in Washington, US, March 22, 2023. (credit: REUTERS/Evelyn Hockstein/File Photo)

"We call on Israel to take the necessary measures to ensure that correspondent banking services between Israeli and Palestinian banks remain in place, so that vital financial transactions and critical trade and services continue," the draft statement said.

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The G7 finance leaders also called for the removal or relaxation of other measures "that have negatively impacted commerce to avoid further exacerbating the economic situation in the West Bank."

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