Palestinians in occupied West Bank waive more than $20 million in personal debts

Palestinians in the occupied West Bank are struggling under mounting financial pressure, with debt has become a growing source of anxiety, particularly as incomes shrink and economic uncertainty deepens amid Israeli restrictions and abuses.

Against this backdrop, some Palestinians have chosen to ease the burden on those struggling by giving up money owed to them.

The trend followed an individual initiative launched by Palestinian journalist and community activist Alaa al-Rimawi, who called on creditors to forgive debts owed by people unable to repay them.

Speaking to The New Arab, al-Rimawi said he came up with the idea after learning about a Palestinian teacher struggling with debt. He contacted the creditor, who agreed to forgive the amount owed.

Dubbed "Forgive for the Sake of God", the initiative is not backed by a charity, political organisation or institution.

What began as a personal intervention developed after al-Rimawi began sharing stories of debt forgiveness on social media, prompting people across the occupied West Bank to contact him about debts they had waived and outstanding cheques they had cancelled.

"The idea began with the desire to lift people's spirits and ease their burdens," al-Rimawi remarked. "We found that there were people burdened by debt they could not repay, while, on the other hand, there were creditors willing to forgive."

The cases reported to and documented by al-Rimawi now involve more than 65 million shekels (around US$21.7 million) in debts and outstanding cheques that creditors agreed to waive, either fully or partially.

He described the response as unprecedented, particularly because some creditors chose to destroy or "grill" cheques and promissory notes rather than pursue repayment.

"This is the first time in the history of debt forgiveness that we've seen 'grilling cheques'," he said. "We are used to grilling meat, but grilling cheques and promissory notes is a first."

For some creditors, al-Rimawi noted, the value of relieving another person's financial distress had come to outweigh the money they were owed.

"Paper money has lost its significance in Palestine; benefactors and creditors are now donating it, viewing it as nothing compared to the value of relieving someone's distress," he said.

"We want to reach a point where we can say this people is unparalleled in its capacity for forgiveness," he added.

Forgiveness over repayment

Among those taking part is Abu Sobhi, a livestock merchant from Hebron. He decided to waive more than 50,000 shekels (US$16,700) owed to him by several people.

"My decision was not because I did not need the money. I have my own obligations, but I recognised that some debtors simply could not afford to repay," he told TNA. "The economic hardship has affected virtually every section of Palestinian society."

"Merchants themselves are under pressure, workers have lost their sources of income, and employees do not always receive their full salaries. Ultimately, everyone is affected; I felt that if I could lift even a portion of this burden from someone, it was the right thing to do," he added.

In Ramallah, Salama, the owner of a shop selling educational supplies similarly waived more than 25,000 shekels (US$8,300) in outstanding debts.

He told TNA that "debt creates a psychological burden alongside its financial consequences."

"Debt weighs on a person not only financially but also psychologically," he said. "There are people who lie awake at night worrying about how to settle their debts; some have lost their income or struggle to provide for their families' needs."

"I told myself I could afford to forgo this amount. While it might represent a financial loss for me, for the debtor, it could mean relief from the immense pressure that haunts them daily," he added.

He stressed that debt forgiveness should not be viewed as an obligation for every creditor, but rather as an option for those who can afford it.

"Everyone knows their own means and circumstances," he said. "I am not saying everyone must waive what is owed to them, but those who can should not hesitate to do so."

Burden lifted

For some debtors, the decision to forgive has brought relief they had not expected.

In Nablus, Abu Mohammed learned that a clothing merchant had decided to forgive the debts of everyone who owed him money. He was among them.

"I was surprised to learn that the merchant had announced the forgiveness of all debts, and upon realising I was among those forgiven, I felt a great sense of relief […] I never expected him to waive his right in such a manner," he told TNA.

The debt had been a constant source of anxiety.

"I was always thinking about how to repay the amount, especially given the current economic conditions," he said. "When a person is in debt and doesn't know where the funds will come from, the matter weighs heavily on their mind constantly."

He said the merchant's decision was particularly meaningful because he knew the money had been legitimately owed.

"I know the money was rightfully his and that he has his own obligations, which is why his decision came as such a surprise to me," Abu Mohammed said. "This act of forgiveness lifted both a financial and a psychological burden from my shoulders."

For him, the initiative illustrates the importance of solidarity at a time when many Palestinians are struggling to meet basic expenses.

"People need one another today. You might not be able to give someone cash, but if you are owed money and choose to forgive the debt, you are helping them immensely," he said.

He argues that cancelling debts will not resolve the occupied West Bank's wider economic crisis, but said it can give struggling families room to recover.

"The problem goes beyond the debt itself; yet, when you absolve someone of a sum they were unable to pay, you give them a chance to get their life back in order anew," he added.

Economic pressure deepens across West Bank

The initiative comes as the West Bank faces a prolonged economic crisis driven by Israeli restrictions, declining employment opportunities and the Palestinian Authority's financial difficulties.

The crisis predates Israel's genocidal war on Gaza, but has intensified since October 2023 as movement restrictions increased and tens of thousands of Palestinian workers were prevented from reaching jobs inside Israel.

Clearance revenues, consisting largely of taxes and customs duties collected by Israel on behalf of the Palestinian Authority, have also been a recurring source of financial pressure. Delays and withholding of portions of the funds have weakened the Authority's ability to meet its salary obligations.

Meanwhile, restrictions on movement and trade have affected merchants and small businesses, while rising living costs have further reduced household purchasing power.

According to Palestinian Central Bureau of Statistics data, the West Bank economy contracted by eight per cent in the first quarter of 2026 compared with the same period a year earlier, while per capita GDP declined by about 9 per cent.

Unemployment also remained high, reaching around 28 per cent in 2025, according to World Bank data, down from approximately 35 per cent at the beginning of the war.