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Mideast envoy warns Gaza banks close to collapse
JERUSALEM (AP) - The office of International Mideast envoy Tony Blair says the Gaza Strip’s banks are on the verge of collapse, according to a memo obtained Sunday by the Associated Press.

In the letter to Israel’s defense ministry, Blair’s office says Israel must funnel some 100 million shekels, or about $28 million, into Gaza each month to keep Gaza’s 45 bank branches afloat. The Israeli shekel is Gaza’s main currency.

Without the cash, it says the Palestinian Authority will not be able to pay the salaries of thousands of civil servants and Gaza’s black market and money launderers will thrive.

Gaza’s cash crunch is unrelated to the global financial turmoil that has rocked world markets over the past month.

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