Palestinians to Get Bank Deposit Insurance as Abbas Signs Law

Bloomberg News

Palestinian President Mahmoud Abbas signed into law a measure to insure bank deposits in a step aimed at providing more economic stability in the West Bank and Gaza Strip.

The new Palestinian Deposit Insurance Corp. will cover 93 percent of bank customers in its first phase, Jihad Al Wazir, governor of the Palestine Monetary Authority, said today in an interview. Abbas signed the law late yesterday and it will take effect in 30 days.

"It will increase confidence in the banking system, particularly in the turbulent times that we are passing through," Wazir said.

The International Monetary Fund said in March that the Palestinian Authority's ability to govern is being eroded by its financial difficulties. U.S. Secretary of State John Kerry said at a conference in Jordan May 27 that a new plan being developed by Israelis and Palestinians could attract $4 billion in investments to boost the economy in the West Bank and Gaza.

To contact the reporters on this story: Jonathan Ferziger in Jerusalem at jferziger@bloomberg.net; Fadwa Hodali in Ramallah at fhodali@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

http://www.businessweek.com/news/2013-05-30/palestinians-to-get-bank-deposit-insurance-as-abbas-signs-law