Palestinian workers demonstrate (Archive photo)
Photo: AFP
Palestinian banks: We won't pay wages
Although Palestinian Authority transfers funds to pay government employees' salaries, banks refuse to pay for fear of US sanctions in light of Hamas-led government boycott
The tens of thousands of Palestinian Authority government employees who expected to receive their salaries on Monday were in for a disappointment Saturday evening.
In spite of the declaration that those with a salary lower than NIS 1,500 (about USD 331) will receive their entire wages and that those with a higher salary will receive advanced payments, the Palestinian banks informed the Palestinian Finance Ministry that they have no plans to transfer the salaries and advanced payments to the Palestinian clerks for fear of sanctions, mainly by the United States.
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The banks' announcement was made in spite of the fact that they have already received the funds to pay the salaries. The banks' representatives noted that paying the wages may cause them great damage in light of the boycott and siege imposed by the American government on the Palestinian Authority, including on salary payments to the government employees.
The Palestinian government transferred millions of Israeli shekels to the banks in order to pay the salaries. Government officials were hopeful that the payment would slightly ease the pressure on the population on the one hand, and on the Palestinian government on the other hand, but the banks apparently got cold feet and announced they would not pay the salaries.
Demonstrations continue
The banks added that they would deliver their final position on the matter on Sunday, but PA officials do not expect a change in the banks' stance. The banks' decision constitutes a harsh blow for the Palestinian government, which exerted great efforts in the past few weeks to pay the wages, including secretly bringing funds into the PA territories in order to guarantee the payments.
Palestinian Prime Minister Ismail Haniyeh said last week that he hopes the first payment would mark the beginning of a solution to the PA salary crisis.
Tens of thousands of Palestinian government employees continued to demonstrate in the Gaza Strip and the West Bank over the weekend in demand to receive their salaries, which have been suspended for three months now. For the first time, the clerks demanded that the government resign if it fails to guarantee the salary payments.
Palestinian government officials condemned the demonstrations, threatening to take disciplinary steps against government employees who will go on strike.
