President Biden's Government 'Frustation' Urges Israel To Extend Banking Agreements With Palestine

Israeli military operations in Gaza. (Source: Israel Defense Forces)

JAKARTA - United States State Department spokesman Matthew Miller expressed frustration by President Joe Biden's administration as intensive negotiations were needed with the Israeli government to convince the country to provide a one-year extension to the relevant banking agreement, which provides compensation for Israeli banks to conduct transactions with Palestinian banks.

"It's frustrating because it took so long to get the Israeli government to extend this agreement for a year now they're doing something they should be doing through ordinary business activities," Miller told a news conference.

It said failure to extend the deal would risk destroying the Palestinian economy, which would clearly not benefit Israel, as it would disrupt the stability of the West Bank.

Previously, far-right Finance Minister Bezalel Smotrich had postponed the extension of the agreement, citing the collapse of the Palestinian Authority, as he sought to annex most of the West Bank.

Days before the banking deal ended, Smotrich said he agreed to support a one-year extension, after gaining a commitment from the Biden Administration they would not allow the ratification of the UN Security Council Resolution which recognizes a Palestinian state.

US officials told The Times of Israel such ideas would go against long-standing government policies and that they had no problems providing such assurances, given that the idea was never in the plan.

When asked if UN Security Council resolution was once part of US negotiations with Israel, Miller replied: "We will continue to see every resolution submitted to the United Nations Security Council and assess whether voting is yes, voting is not, voting abstained, is in the interest of the United States, and we will make assessments based on that and nothing else."