Foreign ministers' statement:
The foreign ministers of the United Kingdom, France and Germany
are deeply concerned that Israel has yet to provided assurances
it will extend the indemnifications for essential correspondent
banking relationships between Israeli and Palestinian banks for a
minimum period of at least 12 months.
On October 31, the Israeli government renewed its
indemnifications of Israeli banks for 30 days, the shortest
extension to date. This disappointing decision prolongs
uncertainty and endangers the Palestinian economy. Cutting off
these banking ties, which Israel has a clear duty under the Paris
Protocol to maintain, would create significant economic turmoil
in the West Bank, jeopardising the security of Israel and the
wider region.
There is no technical basis on which to withhold a year-long
extension. We are fully satisfied that the Palestinian Authority
has taken significant steps to counter the risks of terror
financing, and that financial institutions within the West Bank
maintain adequate controls to manage these risks. The issue of
cross-border payments must not be leveraged to undermine the
Palestinian Authorities, and Israel must pursue policies which
promote internal and external financial stability.
As the deadline of 30 November approaches, we therefore renew our
call for Israel to immediately extend the indemnifications by at
least one year, and for future extensions to be transparent,
predictable and de-politicised.
