Identifier
Created
Classification
Origin
08JERUSALEM2226
2008-12-11 12:15:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
GOI ALLOWS PALESTINIAN BANKS TO TRANSFER NIS 100M
how-toVZCZCXRO3659 OO RUEHROV DE RUEHJM #2226 3461215 ZNY CCCCC ZZH O 111215Z DEC 08 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 3493 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 002226
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR PASCUAL; TREASURY
FOR AHERN DEPT PLEASE PASS TO USAID FOR ME/MEA:NANDY/BORODIN
E.O. 12958: DECL: 12/10/2018
TAGS: EFIN EAID ECON KWBG IS PTER PGOV
SUBJECT: GOI ALLOWS PALESTINIAN BANKS TO TRANSFER NIS 100M
IN CURRENCY TO GAZA
REF: JERUSALEM 2179
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
C O N F I D E N T I A L JERUSALEM 002226
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR PASCUAL; TREASURY
FOR AHERN DEPT PLEASE PASS TO USAID FOR ME/MEA:NANDY/BORODIN
E.O. 12958: DECL: 12/10/2018
TAGS: EFIN EAID ECON KWBG IS PTER PGOV
SUBJECT: GOI ALLOWS PALESTINIAN BANKS TO TRANSFER NIS 100M
IN CURRENCY TO GAZA
REF: JERUSALEM 2179
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
1. (C) Summary: On December 10, The Palestine Monetary
Authority (PMA) reported that it received permission from the
GOI to transfer NIS 100m (USD 25m) in currency from West Bank
to Gaza bank branches. The currency is being trucked to Gaza
on December 11. PMA and bank officials say that banks will
begin disbursing cash through ATM machines immediately. End
Summary.
Cash is on the way
--------------
2. (C) According to the PMA and other West Bank contacts, the
GOI agreed on December 10 to allow the transfer of NIS 100m
in currency to Gaza. PMA Governor Jihad al-Wazir confirmedQto Econoff on December 11 that armored trucks carrying NIS
100m are in the process of transporting the cash. Al-Wazir
said banks in Gaza will fill ATM machines as soon as the
currency arrives, and customers will be able to withdraw cash
immediately. The banks will be closed as usual on Friday,
but plan to re-open for full business services on Saturday,
December 13, assuming the cash arrives safely. (Note: All
bank branches in Gaza have been closed since December 4 due
to the cash shortage.) It is not clear if the NIS 100m will
allow other cash payments, such as UNRWA's assistance to
needy families, to resume.
Al-Wazir: "We will go through this
whole exercise again in three weeks"
--------------
3. (C) Al-Wazir said NIS 100m is not sufficient to disburse
PA salaries in full. (The amount needed is approximately NIS
200m.) As they have done in recent months, each individual
bank will determine what percentage it can disburse.
Al-Wazir believes all banks should be able to pay more than
half of what they owe to account holders.
4. (C) Al-Wazir remains concerned about a run on the banks
when they open on December 13, but said the NIS 100m gives
the banks "room to maneuver." He also noted that "we will go
through this whole exercise again in three weeks," in advance
of the next salary payment in early January, and stressed the
need for regular transfers of cash to Gaza banks to promote
confidence in the sector's integrity.
WALLES
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR PASCUAL; TREASURY
FOR AHERN DEPT PLEASE PASS TO USAID FOR ME/MEA:NANDY/BORODIN
E.O. 12958: DECL: 12/10/2018
TAGS: EFIN EAID ECON KWBG IS PTER PGOV
SUBJECT: GOI ALLOWS PALESTINIAN BANKS TO TRANSFER NIS 100M
IN CURRENCY TO GAZA
REF: JERUSALEM 2179
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
1. (C) Summary: On December 10, The Palestine Monetary
Authority (PMA) reported that it received permission from the
GOI to transfer NIS 100m (USD 25m) in currency from West Bank
to Gaza bank branches. The currency is being trucked to Gaza
on December 11. PMA and bank officials say that banks will
begin disbursing cash through ATM machines immediately. End
Summary.
Cash is on the way
--------------
2. (C) According to the PMA and other West Bank contacts, the
GOI agreed on December 10 to allow the transfer of NIS 100m
in currency to Gaza. PMA Governor Jihad al-Wazir confirmedQto Econoff on December 11 that armored trucks carrying NIS
100m are in the process of transporting the cash. Al-Wazir
said banks in Gaza will fill ATM machines as soon as the
currency arrives, and customers will be able to withdraw cash
immediately. The banks will be closed as usual on Friday,
but plan to re-open for full business services on Saturday,
December 13, assuming the cash arrives safely. (Note: All
bank branches in Gaza have been closed since December 4 due
to the cash shortage.) It is not clear if the NIS 100m will
allow other cash payments, such as UNRWA's assistance to
needy families, to resume.
Al-Wazir: "We will go through this
whole exercise again in three weeks"
--------------
3. (C) Al-Wazir said NIS 100m is not sufficient to disburse
PA salaries in full. (The amount needed is approximately NIS
200m.) As they have done in recent months, each individual
bank will determine what percentage it can disburse.
Al-Wazir believes all banks should be able to pay more than
half of what they owe to account holders.
4. (C) Al-Wazir remains concerned about a run on the banks
when they open on December 13, but said the NIS 100m gives
the banks "room to maneuver." He also noted that "we will go
through this whole exercise again in three weeks," in advance
of the next salary payment in early January, and stressed the
need for regular transfers of cash to Gaza banks to promote
confidence in the sector's integrity.
WALLES