Gaza: Minister of Finance and Planning Estephan Salameh stated on Wednesday that Israeli threats to sever banking relations with Palestinians represent a breach of all red lines, warning that such actions would impact citizens' access to basic services and form part of a systematic Israeli policy aimed at dismantling the Palestinian economy and hindering the establishment of a viable Palestinian state. Speaking at a press conference at the Prime Minister's Office in Ramallah, Salameh announced measures to address the financial and fuel crises, indicating that improvements in the fuel crisis are expected next week, while the government will continue paying 50% of public employees' salaries through the year-end.
According to Palestine News and Information Agency - WAFA, Salameh emphasized that the Israeli threats to cut banking ties would prevent basic services, including water, electricity, and fuel, from reaching Palestinian areas, complicating life for citizens. He highlighted that these measures are part of a long-standing policy intensified under the current Israeli government, which is further narrowing options for Palestinians amid ongoing conflicts in the Gaza Strip and West Bank.
Salameh explained that the financial crisis stems from Israel's withholding of Palestinian clearance revenues, with the government now entering the sixteenth month without these funds. Despite financial obligations leaving only around 100 million shekels monthly, the government strives to maintain essential services. The minister assured that 50% of salaries would be paid until year-end, requiring approximately 650 million shekels monthly, and emphasized the reliance on borrowing, foreign aid, domestic revenues, and sound financial management to finance payments.
Salameh noted efforts to increase foreign assistance, though current levels remain inadequate, and praised the Palestinian banking sector's cooperation. He stressed that no new taxes would be imposed, but domestic revenues would be strengthened by ensuring taxpayers settle obligations, viewing tax evasion as a national security issue.
Addressing the liquidity crisis, Salameh advocated expanding electronic payments and reducing cash reliance, particularly the Israeli shekel, due to Israel's reluctance to handle Palestinian currency surpluses. He detailed the distribution of cash in the market and noted the infrastructure for electronic transition, with 1.8 million bank cards in circulation. Salameh emphasized adopting other currencies and expanding electronic payments as protective measures against potential Israeli banking severance.
Regarding the fuel crisis, Salameh attributed it to Israeli measures and liquidity issues, with fuel stations relying on cash transactions. He highlighted restricted cash deposits in banks and limited fuel storage capacity as main obstacles, explaining cooperation with authorities to release held tankers and ensure fuel supply continuity.
Salameh also discussed the establishment of the National Fuel Company to address governance shortcomings in the sector, separating regulatory, oversight, and operational functions. He assured that the company aims to enhance governance and efficiency without affecting fuel stations or citizen services.
Salameh reiterated the government's focus on health and salary priorities, allocating significant funds to hospitals and medicines, and engaging international partners for additional support. He lamented the continuous withholding of clearance revenues by Israel, approaching $6 billion, and urged international community support.
In conclusion, Salameh pledged transparency and resilience, holding the international community accountable for insufficient support amid the ongoing crisis, and expressed gratitude for the resilience of Palestinian employees and citizens.