US Treasury Secretary Janet Yellen has warned Israel not to cut its banks’ ties to Palestinian lenders, saying its “threats” to cancel a vital waiver between financial institutions would rob the Palestinian Authority of essential services and sources of revenue.
US officials believe Israel’s ultranationalist finance minister, Bezalel Smotrich will not renew the annual waiver when it expires on July 1.
“I’m particularly concerned by Israel’s threats to take action that would lead to Palestinian banks being cut off from their Israeli correspondent banks,” Yellen said on Thursday.
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