We will build barrier despite US loan penalty, says Israel

PALESTINIAN officials said yesterday an American decision to deduct $289 million from loan guarantees to Israel was insufficient to force Israel to stop building a security barrier or to end continued settlement construction.

The deduction, taken from $9 billion in guarantees promised over three years, reflected the amount Israel is spending on parts of the barrier that cut into the West Bank, as well as other Israeli construction there.

Palestinians reject the route of the Israeli security barrier deep into land they want for a future state, seeing it as an Israeli land grab.