Barclays Resists Pressure to Boycott Israeli Bond Auctions

Barclays has decided to continue participating in Israeli government bond auctions, despite significant pressure from pro-Palestinian activists advocating for a boycott. The British bank, which is one of seven foreign lenders facilitating Israel’s debt sales, initially considered withdrawing from the market but ultimately reaffirmed its role as a primary dealer.

On Tuesday, Barclays informed Israeli officials of its decision to maintain its involvement, joining other major financial institutions like Goldman Sachs, JPMorgan Chase, and Deutsche Bank. Israel’s Accountant General, Yali Rothenberg, expressed gratitude for the bank’s continued commitment, emphasising the importance of global financial institutions standing against boycotts and supporting Israel’s right to self-defence.

Barclays has faced protests from activists who disrupted its annual shareholder meeting in May and demonstrated outside its London branch. The bank has been criticised for its financial services to defence firms that supply the Israeli military.

In response to the criticism, Barclays clarified that it does not invest its own funds in companies producing weapons used by Israel in Gaza. The bank trades shares on behalf of clients and stated that it would end any relationship with entities if evidence of cluster bomb manufacturing were found.

Israel has relied on international debt sales, including a record $8 billion bond issuance in March, to finance its expanding government deficit amid the ongoing conflict with Gaza. The war was initiated following an attack by Hamas on October 7, which resulted in significant casualties on both sides.