AI
Monday, October 29, 2007 4:56:38 AM
Denied Cash, Gazans Fear Bank Run
By SARAH EL DEEB
The Associated Press
Monday, October 29, 2007; 3:42 AM
GAZA CITY, Gaza Strip -- On a Gaza City main street, three out of eight ATMs are
wired off and locked, sending a stark warning to customers: Cash is running out.
Fears of a panic have been sparked by the decision of two Israeli banks to sever
ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash.
Palestinians walk past an ATM at a branch of the Palestine Islamic Bank in Gaza City, Friday, Oct 26, 2007. In one of Gaza City's main streets, three out of eight ATM machines are locked and encased in wire mesh, sending a stark warning to customers: Cash supplies are running out. Fears of a panic have been sparked by the decision of two Israeli banks to sever ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash. (AP Photo/Hatem Moussa) Palestinians walk past an ATM at a branch of the Palestine Islamic Bank in Gaza City, Friday, Oct 26, 2007. In one of Gaza City's main streets, three out of eight ATM machines are locked and encased in wire mesh, sending a stark warning to customers: Cash supplies are running out. Fears of a panic have been sparked by the decision of two Israeli banks to sever ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash. (AP Photo/Hatem Moussa) (Hatem Moussa -
The cutoff was prompted by concerns by the banks that they might run afoul of anti-terrorism
regulations. It came after Israel designated Gaza "hostile territory" in September.
The government's decision was part of a series of moves to weaken the Islamic militant group Hamas, which violently seized control of Gaza in June .. fuagf .. wasn't there an election? .. and has allowed militants to continue firing rockets into Israel. Gaza residents say it's collective punishment.
The cutoff was supposed to begin last week, but was delayed for a month by Israel's central bank while
alternatives are sought. Meanwhile, Gaza's 12 banks are scrambling for ways to keep their operations going.
Bankers say enough cash is circulating to keep the economy, badly hit by the closure of Gaza's borders, sputtering along. But the unease was already palpable during this month's Muslim holiday of Eid el-Fitr, when people spend on gifts, clothes and food.
Banks declined to cash large checks and limited
withdrawals. Some branches closed or shortened their hours.
A Hamas leader insists the group has enough cash to last for a year, but Maamoun Abu
Shahla, a board member of the Palestine Bank in Gaza, is alarmed by the Israeli move.
"This means the death of banking life in Gaza," he said. "All
our business with the world is done through Israeli banks."
His institution has done business with Israeli banks for 24 years but has had to move its headquarters to the West Bank,
which is controlled by the moderate government of Palestinian President Mahmoud Abbas and is not affected by the order.
Gaza is entirely dependent on Israel for trade, and the Israeli shekel is the primary currency. Following the Hamas takeover, .. fuagf .. hang on I must be missing something .. election??? .. Israel and Egypt closed the borders with Gaza, and Israel allowed only basic items, such as food and medicine, into the territory.
On Sunday, Israel began cutting vital fuel shipments to the Gaza Strip after the Israeli government
warned it would use the tactic to pressure Hamas after months of Palestinian rocket attacks.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/29/AR2007102900315.html
By SARAH EL DEEB
The Associated Press
Monday, October 29, 2007; 3:42 AM
GAZA CITY, Gaza Strip -- On a Gaza City main street, three out of eight ATMs are
wired off and locked, sending a stark warning to customers: Cash is running out.
Fears of a panic have been sparked by the decision of two Israeli banks to sever
ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash.
Palestinians walk past an ATM at a branch of the Palestine Islamic Bank in Gaza City, Friday, Oct 26, 2007. In one of Gaza City's main streets, three out of eight ATM machines are locked and encased in wire mesh, sending a stark warning to customers: Cash supplies are running out. Fears of a panic have been sparked by the decision of two Israeli banks to sever ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash. (AP Photo/Hatem Moussa) Palestinians walk past an ATM at a branch of the Palestine Islamic Bank in Gaza City, Friday, Oct 26, 2007. In one of Gaza City's main streets, three out of eight ATM machines are locked and encased in wire mesh, sending a stark warning to customers: Cash supplies are running out. Fears of a panic have been sparked by the decision of two Israeli banks to sever ties with the Gaza Strip. Bank officials in Gaza say customers are already hoarding cash. (AP Photo/Hatem Moussa) (Hatem Moussa -
The cutoff was prompted by concerns by the banks that they might run afoul of anti-terrorism
regulations. It came after Israel designated Gaza "hostile territory" in September.
The government's decision was part of a series of moves to weaken the Islamic militant group Hamas, which violently seized control of Gaza in June .. fuagf .. wasn't there an election? .. and has allowed militants to continue firing rockets into Israel. Gaza residents say it's collective punishment.
The cutoff was supposed to begin last week, but was delayed for a month by Israel's central bank while
alternatives are sought. Meanwhile, Gaza's 12 banks are scrambling for ways to keep their operations going.
Bankers say enough cash is circulating to keep the economy, badly hit by the closure of Gaza's borders, sputtering along. But the unease was already palpable during this month's Muslim holiday of Eid el-Fitr, when people spend on gifts, clothes and food.
Banks declined to cash large checks and limited
withdrawals. Some branches closed or shortened their hours.
A Hamas leader insists the group has enough cash to last for a year, but Maamoun Abu
Shahla, a board member of the Palestine Bank in Gaza, is alarmed by the Israeli move.
"This means the death of banking life in Gaza," he said. "All
our business with the world is done through Israeli banks."
His institution has done business with Israeli banks for 24 years but has had to move its headquarters to the West Bank,
which is controlled by the moderate government of Palestinian President Mahmoud Abbas and is not affected by the order.
Gaza is entirely dependent on Israel for trade, and the Israeli shekel is the primary currency. Following the Hamas takeover, .. fuagf .. hang on I must be missing something .. election??? .. Israel and Egypt closed the borders with Gaza, and Israel allowed only basic items, such as food and medicine, into the territory.
On Sunday, Israel began cutting vital fuel shipments to the Gaza Strip after the Israeli government
warned it would use the tactic to pressure Hamas after months of Palestinian rocket attacks.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/29/AR2007102900315.html
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