Quartet Middle East envoy Tony Blair called on Israel Sunday to pump $28 million a month into Gaza banks to save the financial system from collapse. Blair wrote Defense Minister Ehud Barak that the money is needed to cover salaries that are paid for by the Palestinian Authority (PA).

He warned that failure to help the Gaza banks will encourage black market tunnel operators and smugglers. Israel has expressed fears that money transfers will end up in the hands of Hamas terrorists.