Financial Times FT.com

Hamas banks credit in cash-starved Gaza

By Anna Fifield in Gaza City and Tobias Buck in Jerusalem

Published: January 27 2009 19:38 | Last updated: January 27 2009 19:38

The Gaza Strip is running perilously short of money, with its banks unable to pay out salaries, after Israel stopped allowing deliveries to banks in the Palestinian territory two months ago.

The only group that appears to be immune to the cash crisis is, ironically, Hamas itself. The Islamist group, which was the target of Israel’s three-week military offensive, has promised to distribute as much as €40m ($52m, £37m) to families whose houses were demolished.

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