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Official: Funding Crisis May Force Hamas to Change

The leaders of Hamas will be forced to take more moderate positions if the Palestinian Authority's financial crisis continues to worsen, says the head of the Palestinian Monetary Authority. Employees of the new Hamas-led Palestinian Authority haven't been paid in more than two months.

Fearful of anti-terrorism legal action, Arab banks are refusing to transfer money to Hamas, even if the funds are directed to individual government employees. Banks are also cutting off much-needed credit to workers.

But in their public remarks, Hamas officials have given little indication that they will soften their stance, lashing out at the United States and Israel and warning of violence if "this catastrophe" continues.

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