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Israel resumes monthly cash transfer to Palestinian Authority Israel resumes monthly cash transfer to Palestinian Authority
(4 months later)
Israel is to resume the regular transfer of about $100m a month to the Palestinian Authority after withholding the tax revenues it collects on behalf of the Palestinians as a punitive measure following last November's statehood recognition at the United Nations.Israel is to resume the regular transfer of about $100m a month to the Palestinian Authority after withholding the tax revenues it collects on behalf of the Palestinians as a punitive measure following last November's statehood recognition at the United Nations.
The move is the first tangible step taken towards rebuilding confidence between the two sides ahead of the possible resumption of peace negotiations in the coming months. The US president, Barack Obama, made a strong appeal for fresh talks while visiting the Holy Land last week, and the secretary of state, John Kerry, has begun the detailed work of trying to end the impasse.The move is the first tangible step taken towards rebuilding confidence between the two sides ahead of the possible resumption of peace negotiations in the coming months. The US president, Barack Obama, made a strong appeal for fresh talks while visiting the Holy Land last week, and the secretary of state, John Kerry, has begun the detailed work of trying to end the impasse.
During his three-day visit Obama called for "steps that both Palestinians and Israelis can take to build trust and confidence upon which lasting peace will depend".During his three-day visit Obama called for "steps that both Palestinians and Israelis can take to build trust and confidence upon which lasting peace will depend".
Israel froze the cash transfers at the end of last year, causing significant financial difficulties for the PA and hardship for the thousands of families dependent on public-sector salaries. One instalment was paid earlier this year after warnings that the PA could collapse, but decisions on payments were being made on a month-by-month basis.Israel froze the cash transfers at the end of last year, causing significant financial difficulties for the PA and hardship for the thousands of families dependent on public-sector salaries. One instalment was paid earlier this year after warnings that the PA could collapse, but decisions on payments were being made on a month-by-month basis.
The International Monetary Fund warned earlier this month that the PA's financial situation was "increasingly precarious". Its 160,000 employees in the West Bank and Gaza have not received full wages for months.The International Monetary Fund warned earlier this month that the PA's financial situation was "increasingly precarious". Its 160,000 employees in the West Bank and Gaza have not received full wages for months.
The US state department announced on Friday that almost $500m in aid had been unfrozen after Congress blocked the funds in late 2012, and would be transferred to the PA.The US state department announced on Friday that almost $500m in aid had been unfrozen after Congress blocked the funds in late 2012, and would be transferred to the PA.
A statement from the Israeli prime minister's office said Binyamin Netanyahu "has decided to authorise the transfer of fiscal revenues to the Palestinian Authority", and that the finance minister had already "charged officials with taking up the transfer of funds again".A statement from the Israeli prime minister's office said Binyamin Netanyahu "has decided to authorise the transfer of fiscal revenues to the Palestinian Authority", and that the finance minister had already "charged officials with taking up the transfer of funds again".
Under the terms of the Oslo Accords, signed almost 20 years ago, Israel is obliged to collect import and export duties on behalf of the PA.Under the terms of the Oslo Accords, signed almost 20 years ago, Israel is obliged to collect import and export duties on behalf of the PA.
According to Haaretz, Netanyahu delayed announcing the step until shortly before the start of the Passover holiday.According to Haaretz, Netanyahu delayed announcing the step until shortly before the start of the Passover holiday.
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