Israel’s Bank Hapoalim said that it is severing ties with Palestinian banks due to the major Palestinian economic crisis that has evolved in the wake of the Hamas government. The Palestinian government uses local Israel currency to conduct its business, converting the money into millions of dollars to pay it 140,000 employees each month. Arab banks previously advised Hamas to withdraw money from their accounts fearing western countries would impose sanctions against the banks. Palestinian Foreign Minister Mahmoud Zahar criticized banks for refusing to deal with Hamas. “The banks which won't deal with us will lose because we have all the legitimate channels to receive funds,” he said.
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