Palestinian companies owe NIS 100 million to Israeli industries, according to the records of the Industrialist Union.
Recently, Israeli banks stopped working with Palestinian banks due to international legislation which forbids them from associating with bodies suspected of financing terrorism. As a result, Israeli banks stopped accepting checks from Palestinian Authority banks, and therefore the Palestinians companies cannot pay their Israeli providers.
Most Palestinian businesses are also somehow linked to the PA government, which is also suffering a severe cash deficiency owing to the United States and European Union decision to cut off aid to the Hamas government, and Israel’s decision to withhold tax payments. As a result, most Palestinian businesses cannot pay their Israeli providers in cash.
On Sunday, the PA’s gas company Dor Alon cut off its supplies until the PA pays the tens of millions of shekels it owes in bills.
In 2005, Israeli export to the PA summed NIS 9 billion, a 10 percent increase over 2004. Food sales totaled NIS 400 million.
“Despite the deterioration of the political situation between Israel and the PA, Israeli businesses continued working with Palestinians,” director-general of the Industrialists’ Union, Yoram Belizovski, said.
“The Palestinian market counts for a large amount of industrial sales. I call on the government to pay debts to the industries with money reaching the PA, as the bills to the gas, telephone and electric companies were deducted.”