Shannar Warns French Official of the Consequences of Holding Back Clearance Funds and the Threat to Basic Services on the Private Sector and Economic Cycle

SadaNews Economy - The Governor of the Palestinian Monetary Authority, Mr. Yahya Shannar, briefed Paul Thibault, the Head of the Department of Bilateral Relations and Corporate Internationalization at the French Treasury, on the repercussions of Israeli measures on the Palestinian private sector and the national economy.

This came during an extensive meeting held in Paris, where the French official, a prominent figure in French and European economic and financial circles, listened to a detailed explanation of the challenges facing the Palestinian private sector, as it is one of the essential pillars of the national economy.

Governor Shannar explained that the crisis of the accumulation of shekels in Palestinian markets, due to Israel's refusal to accept the surplus shekels, alongside the threat to sever correspondent banking relations, has negatively impacted the private sector and commercial activity, exacerbating the challenges faced by Palestinian traders and companies in completing daily financial and commercial transactions at various levels. In terms of international trade dealings, particularly import and export, this has affected trade movement and economic activities, contributing to increased pressure on overall economic activity and on growth rates and gross domestic product.

During the meeting, the governor also addressed the issue of outstanding debts owed to the private sector, amidst the threat to halt the basic services provided by the health sector due to the accumulation of financial dues owed to the Palestinian Authority because of Israel's retention of clearance funds, and the resulting constraints on the government's ability to meet its obligations towards the private sector. He indicated that this situation impacts the continuity of service provision in various sectors and the economic life cycle and activity.

Shannar emphasized the importance of international and European action to help mitigate these repercussions and support the resilience of the Palestinian economy and private sector.

For his part, the French official expressed interest in following up on these developments and promised to convey the full picture to official levels, and to support efforts at the European and global levels to explore ways to contribute to stabilizing the Palestinian economy and banking sector.