Banking Troubles in Gaza – $25 Million Delivered
Public sector employees in the Gaza Strip have recently encountered difficulties collecting their salaries due to the severe cash shortage faced by area banks. The shortage is in part a result of the Israeli blockade that has prevented many from traveling freely to and from Gaza – a detrimental effect on business, especially with regard to the Palestinian banking system. In an effort to ease the stress, Palestinian Prime Minister Salam Fayyad has requested that the Israeli blockade allow money to enter the Palestinian treasury from outside the borders in hopes of avoiding more widespread financial collapse. Subsequently, Israel allowed an armored truck carrying $25 million in currency to enter from the West Bank. This amount is half of that which Prime Minister Fayyad requested of Israeli officials in order to pay Gaza’s civil servants.
Paul Shapiro
