Yahya Al-Shenar, Governor of the Palestinian Monetary Authority, confirmed on Friday that the reconstruction of the Gaza Strip must be led exclusively by Palestinians, relying on the capacities of the banking and private sectors to lead recovery efforts and implement reconstruction projects. He stressed the necessity of maintaining the unity of the banking sector and the complete financial and economic interdependence between the West Bank and the Gaza Strip to ensure resources are directed toward national priorities.
Reconstruction Costs and Financing
Al-Shenar pointed out that the cost of recovery and reconstruction exceeds 71 billion dollars, according to estimates by the World Bank and international institutions. He called for addressing restrictions on the repatriation of surplus liquidity to ensure the smooth flow of financing, and urged the World Bank Group to lead international efforts to mobilize support and expand financing through existing funds.
Banking Situation and Israeli Relations
Thirteen local and foreign banks operate in the Palestinian market, comprising seven local banks and six foreign ones, including five Jordanian banks and one Egyptian bank. Two Israeli banks, Discount and Hapoalim, manage the Palestinian banks' relationships with the Israeli banking system to send and receive cash transfers, particularly those related to trade payments.
Security and Humanitarian Context
The Israeli government issued a decision three years ago to protect these two banks from any lawsuits, a decision that is renewed annually; without this protection, Israeli banks would be exposed to legal claims. Since the start of the Israeli genocide in the Gaza Strip in October 2023, the renewal of the correspondence agreement has been done every three months instead of a full year. Despite the ceasefire agreement announced since October 10, 2025, Israel continues its genocide war and prevents the entry of humanitarian aid, where approximately 2.4 million Palestinians live in catastrophic conditions.
Source: Anadolu Agency
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