Luxembourg's general pension fund (FDC) has decided to boycott five Israeli banks due to their illegal activities in West Bank settlements.
The Israeli website Walla reported that the state-affiliated pension fund of Luxembourg has decided to boycott all major banks in Israel.
The website pointed out that despite the small size of the state of Luxembourg in Europe; it constitutes a major hub in the world's investment and finance.
The FDC's website published an "exclusion list" of about 60 companies around the world describing their practices as unethical. Among these companies are eight Israeli institutions, including Israel's major banks – Israel Discount Bank, Bank Hapoalim, Bank Mizrahi-Tefahot, Bank Leumi and First International Bank of Israel.
Two companies are also on the list; Elbit Systems Ltd and Africa Israel Investments Ltd, both based in Jerusalem.
The FDC explained this boycott on the grounds that these companies "support the construction of illegal settlements in occupied territories."
The European boycott campaign against Israel has been on the rise urging Israel to look at ways to combat it. Israel has demanded European countries enact laws prohibiting the boycott of Israel in the future.