Special report: Hamas-led cabinet takes office

    JERUSALEM, April 4 (Xinhua) -- Hapoalim Bank, Israel's largest bank, cut off all its connections with the Palestinian National Authority (PNA), in the wake of the swearing-in of the Hamas-led government, Israel's leading newspaper Yedioth Ahronoth reported on Tuesday.

    Hapoalim Bank, the last Israeli bank having business ties with the Palestinians, has suspended in the last 24 hours all its connections with the PNA by ceasing processing the PNA checks and transferring funds, the report said.

    Hapoalim Bank has been the main and almost the only Israeli bank to keep financial transactions with the PNA since the Islamic Resistance Movement (Hamas) won the Palestinian legislative elections in January.

    The bank's latest move in effect put an end to remaining banking ties between Israel and the PNA following Hamas' swearing-in last Wednesday.

    Referring to Hapoalim's decision, a senior political source in Jerusalem was quoted by Yedioth Ahronoth as saying that the PNA's financial situation would "completely deteriorate to total chaos, "adding that the bank "had no other choice."

    According to the report, Hapoalim Bank's transactions with the PNA totals tens of millions of dollars on average per day.

    Following Hamas' rise to power, the bank has decided to cease contact with the PNA, in accordance with international legislation that prohibits banks from doing business with organizations and institutions suspected of sponsoring terrorist activity.

    Israeli government, which considers Hamas a terrorist group, has stopped transferring tax payment collected on behalf of the PNA following Hamas election victory. Enditem