Palestinian Governor Warns of Imminent Collapse Within Weeks

The governor of the Palestinian Monetary Authority, Yahya Shanar, warned at an urgent conference in Ramallah that the Palestinian Authority is within weeks of complete collapse, against the backdrop of Bank Hapoalim and Bank Discount's intention to sever banking ties with Palestinian banks. The move would cut off the PA's economic connection with the world and harm food and fuel supplies. US Ambassador to Israel, Mike Huckabee, warned that economic collapse would lead to escalation and growing despair.

The governor of the Palestinian Monetary Authority, Yahya Shanar, warned at an urgent conference held last week in Ramallah that the Palestinian Authority is "within weeks of complete collapse." Shanar claimed that "Israeli measures" are pushing the Palestinian economy toward collapse, which could harm food security and the supply of essential services. The background to the warning is the intention of Bank Hapoalim and Bank Discount to sever banking ties with Palestinian banks, after the Ministry of Finance did not formulate an alternative. The move would cut off the PA's economic connection with the world. US Ambassador to Israel, Mike Huckabee, previously warned that economic collapse "would lead to escalation and growing despair." International representatives attended the conference and called for urgent intervention. Bank Hapoalim set October 1 as the date for severing ties. Bank Discount stated that it recognizes the importance of the issue but demands that the state bear responsibility and risks. The Finance Ministry claims that the compensation framework has been extended until the end of 2026.