US says Israel’s waiver for Palestinian banks cooperation was ‘very short term’

The US government on Thursday said Israel’s decision to sign a waiver to extend cooperation between Israeli and Palestinian banks for another month was for a “very short term duration” and would create “another looming crisis” by Nov. 30.

Israeli Finance Minister Bezalel Smotrich’s spokesman said on Thursday he will sign a waiver to extend cooperation between Israeli and Palestinian banks for another month after the cabinet agreed.

Last month, Palestinian authorities met Israel’s requirements for the indemnification needed to allow Israeli banks to continue conducting transactions with Palestinian banks, a source familiar with the situation said.

Technical experts at the time argued that should warrant an extension of a indemnification that expired on Oct. 31 for at least a year to avert an economic crisis in the West Bank, the source added.