According to a Financial Times report, citing unnamed sources, Barclays, one of seven international banks assisting the Israeli government in selling new debt, had considered withdrawing from future Israeli government bond auctions. This deliberation was reportedly in response to pressure from activists sympathetic to Hamas. The British bank had apparently been preparing to exit the market in recent weeks to avoid criticism regarding its ties with Israel during the ongoing conflict in Gaza.
HAPPENING NOW:
Protest outside Barclays HQ in Canary Wharf, London
‘Stop arming Israel, stop funding genocide!’
Barclays has £1 billion in shares and provides over £3 billion in loans and underwriting to companies arming Israel pic.twitter.com/pCXU2HEyGS
— Lukas Slothuus (@lslothuus) February 7, 2024
However, following further internal discussions and after being approached by the Financial Times for comment, Barclays reportedly informed Israeli officials on Tuesday evening that it intended to maintain its role as a primary dealer. This position aligns Barclays with other major international financial institutions, including Goldman Sachs, JPMorgan Chase, and Deutsche Bank, which continue to operate in this capacity.
To address the expanding government deficit resulting from its war against Hamas, Israel has issued substantial amounts of debt. In March, the country conducted a notable international bond sale, raising a record $8 billion. This is part of a broader strategy that has seen Israel sell debt instruments valued at billions of dollars.
Israel Bonds surpassed $2.7 billion in worldwide investments during 2023, a record-breaking total in the organization’s 72-year history, more than doubling its average annual sales.
Activists from the British Palestine Action movement attacked the bank offices of BNY Mellon and Barclays in Manchester, which are “profiting from Palestinian blood pic.twitter.com/YAOpWbCd3Y
— S p r i n t e r (@SprinterFamily) May 1, 2024
“Israel Bonds demonstrated its strength as a meaningful powerhouse and a reliable resource for the State of Israel, especially in the crucial months following the onset of the Israel-Hamas war, and will continue the campaign in full force throughout 2024,” said Dani Naveh, President and CEO of Israel Bonds.
In June, Barclays stopped sponsoring some of the biggest music festivals in the UK, after several artists announced the cancellation of their planned performances amid allegations of the bank’s alleged involvement in the war between Israel and Hamas.
The bank stopped sponsoring Live Nation’s festivals, including Latitude, Download, and the Isle of Wight Festival. The announcement came after several comedians and musicians announced that they would not perform, following pro-Hamas protests that called on the bank to sever its ties with defense companies that sell arms to Israel.
Barclays has a corporate banking relationship with Israel’s Elbit Systems, Bank Chairman Nigel Higgins said at the bank’s annual meeting in May, which was repeatedly disrupted by pro-Hamas and climate protests.
More than 15 Barclays branches in the UK and Scotland have been covered in red paint and their windows smashed as part of a joint protest by the Palestine Action Group and a new climate activist group called Shut the System.
Barclays is the world’s third most active buyer of Israel bonds at auctions, according to official statistics. But it has fallen to 11th place in April through June this year.
