Today’s news / World Bank warns of West Bank financial collapse
The American Treasury Secretary, Janet Yellen, spoke on Thursday at a press conference ahead of a meeting between the finance ministers of the G7 countries in Stresa, Italy. Photo: Massimo Pinca/Reuters

World Bank warns of West Bank financial collapse

The World Bank has issued a warning about an increased risk of financial collapse in the Palestinian Authority in the West Bank, worsened by Israel’s war in Gaza. The escalating discrepancy between revenues and the costs of essential public expenditures is driving a financial crisis. Concern was expressed by U.S. Treasury Secretary Janet Yellen regarding Israel’s threat to cut off Palestinian banks’ access to Israeli banking services. Israeli Finance Minister Bezalel Smotrich is not in favor of extending a waiver expiring on July 1st that allows Israeli banks to handle shekels for services and wages related to the Palestinian Authority. Recent tensions in the West Bank have escalated since Israel’s attacks in Gaza post the Hamas attack on October 7. On Tuesday, eight Palestinians died during an Israeli attack in Jenin, and the Israeli military stated it performed an ‘anti-terror operation.’