In a recent statement issued after a meeting of G7 Finance Ministers, the leaders called on Israel to take measures to ensure the operation of banking services between Israeli and Palestinian banks.
The Norwegian Ministry of Foreign Affairs said: “In line with the G7’s recent statement… the Nordic countries call on Israeli authorities to urgently release withheld Palestinian tax revenues and ensure the continuation of correspondent banking services between Israeli and Palestinian banks.”
The Norwegian statement emphasized that Israel’s withholding of Palestinian tax revenues exacerbates the already dire financial situation in Palestine.
The statement reaffirmed the Nordic countries’ support for necessary reforms in Palestine, stressing that strengthening legitimate Palestinian institutions is crucial for achieving a negotiated two-state solution, which is described as “the only viable solution” to the Israeli-Palestinian conflict.
In May, Israeli Finance Minister Bezalel Smotrich stated that Israel would not transfer tax revenues to the Palestinian government, in response to the decision of three European countries to recognize Palestine as a state.
The UN’s top coordinator for humanitarian affairs in Gaza, Sigrid Kaag, stated that the war has unleashed a vortex of humanitarian despair, collapsing the public health system and disrupting the education system, threatening future generations.
Addressing the UN Security Council on the Middle East situation, Kaag emphasized that ambitious planning for Gaza’s reconstruction requires generous funding. She highlighted the vital role of the Palestinian Authority in the sector to implement recovery efforts.
She explained that Gaza’s reconstruction involves building or renovating more permanent homes, restoring health and sanitation systems, rehabilitating schools, and supporting around 17,000 children who have become orphans due to the war.
