Smotrich repeatedly approved rescue framework for Palestinian banks, receiving in return concessions for settlement expansion

First report: Finance Minister Bezalel Smotrich repeatedly approved indemnity letters for Israeli banks that provide clearing services to Palestinian banks, and in return received concessions for expanding settlements. At the last cabinet meeting, the Shin Bet warned of the PA's collapse if money was not transferred, and Ben Gvir attacked: "You sold your principles for building a few houses."

A first report by ynet reveals that Finance Minister Bezalel Smotrich repeatedly approved indemnity letters for Israeli banks Discount and Hapoalim, which serve as a clearing mechanism for Palestinian banks, and in return received concessions for expanding settlements and establishing new communities. For years, Smotrich used the indemnity letters as a pressure tool against the Palestinian Authority, signing short extensions and threatening to expose terrorist ties. At a cabinet meeting held about two months ago, Shin Bet chief David Zini warned that if money was not transferred to banks in the Authority, the chances of its collapse would increase. The cabinet, including Smotrich, decided to offer the banks indemnity letters until the end of 2026. Minister Itamar Ben Gvir voted against and told Smotrich: "You sold your principles for building a few houses." In recent days, at least one of the banks was persuaded to resume serving as a clearing mechanism. The article criticizes the policy, stating that the PA's existence is an Israeli interest, and that the policy leads to chaos and anarchy.

Smotrich repeatedly approved rescue framework for Palestinian banks, receiving in return concessions for settlement expansion