RAMALLAH, October 6, 2026 (WAFA) – Palestine Monetary Authority Governor Yahya Shunnar today said that the Palestinian economy continues to face serious risks as correspondent banking relations remain subject to temporary decisions. He noted that while the Governor of the Israeli central bank has pledged to extend these relations until December 31, 2026, the extension does not constitute a permanent solution to financial and banking relations between the two sides.

Shunnar made these remarks during a meeting today with Ambassador Andreas Fiedler, the newly appointed European Union (EU) Representative to the State of Palestine, and his accompanying delegation. The meeting was held in the presence of PMA Deputy Governor Mohammad Manasra and several PMA department directors.

Shunnar stressed the need for the European Union to play an active role in addressing this issue and to exert pressure to ensure the continuation of banking relations with Israeli banks. He emphasized the importance of these banking relations in maintaining trade flows, supply chains, and related payments, as well as ensuring the continuity of vital services provided to citizens.

He explained that the continuation of these banking relations should not remain contingent upon temporary decisions or extensions, calling on the European Union and the international community to use their tools and influence with the Israeli side and the banks concerned, particularly given the extensive operations, investments, and relations these banks have with the international financial system.

He stressed the need for the European Union to strengthen its role in addressing the repercussions of Israeli measures on the Palestinian economy and move toward a sustainable solution to the issue of banking relations.

Shunnar also highlighted the Palestinian banking sector’s commitment to applying the highest international standards in combating money laundering and terrorist financing, as well as continuing to develop its practices and supervisory systems.

T.R.