Bezalel Smotrichצילום: Yonatan Sindel/Flash90
After Smotrich’s pressure, US says it will block recognition of PA state at UNSC
Israeli government approves extending indemnities to PA banks for another year to prevent the PA economy from collapsing after the Biden Administration assured Israel it would veto any UN Security Council resolution recognizing a Palestinian State.
The Political-Security Cabinet approved in a telephone vote this evening (Thursday) the proposal of Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to extend by one year the indemnity for Israeli banks to contract with banks in the Palestinian Authority – in order to prevent the PA’s collapse.
Sources close to Minister Smotrich revealed that he agreed to the extension following a commitment given from the Biden Administration not to pass a resolution in the Security Council recognizing a Palestinian state and to impose an American veto on any such resolution if it is raised in the council.
Smotrich recently ordered the automatic signing of the indemnities for Israeli banks that transfer money to Palestinian Authority banks, which until his term was granted automatically, to be blocked.
In June, a four-month extension was granted in exchange for the regulation of five settlements and the approval of 5,900 housing units in the settlements in Judea and Samaria.
About a month ago, the minister granted another extension due to concerns about a resolution in the UN Security Council against Israel.
During the cabinet vote tonight, one minister opposed the move – Minister of National Security Itamar Ben-Gvir. “My opposition to indemnifying Israeli banks for their connection with the Palestinian Authority is a principled opposition.”
“I regret that my colleagues make statements against the PA but in practice vote differently. In my opinion, the PA should be collapsed, not supported or helped to prevent it from collapsing economically,” said Ben-Gvir.
Earlier, the foreign ministers of Britain, France and Germany issued a statement calling for the indemnities to the PA backs to be extended in order to prevent the collapse of the PA economy.
Finance Minister Bezalel Smotrich responded, “While financial institutions in Israel are committed to strict international standards, Israel is hypocritically required to allow the transfer of funds that go to finance terrorism that murders its citizens and to a financial system of the Palestinian Authority that is not committed to basic standards accepted in the world to the extent of hiding the data from international criticism. Israel will continue to uphold the law and international standards and demand that the Palestinian Authority cease financing terrorism.”
