“In view of the government’s decision to declare the Gaza Strip hostile territory, Bank Hapoalim has decided to halt banking activities with banks and branches located in the Gaza Strip.”
Bank Hapoalim (LSE: BKHD; TASE: POLI) has severed its business ties with banks in the Gaza Strip following the government’s declaration that Hamas-controlled Gaza is “hostile territory”.
The bank said, “In view of the government’s decision to declare the Gaza Strip hostile territory, Bank Hapoalim has decided to halt banking activities with banks and branches located in the Gaza Strip.” A Bank Hapoalim spokesman said that several weeks would be needed to completely sever ties with Gaza banks.
A Palestinian banker said in response that the decision was liable to be a first step and other Israeli banks would follow suit. He said that this could paralyze the banks in Gaza.
Last week’s cabinet decision paved the way to further restrict the movement of goods into the Gaza Strip, including fuel, and to limit the movement of people into and out of the area.
Published by Globes [online], Israel business news - www.globes.co.il - on September 25, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007