Palestinian Prime Minister Mohamed Mustafa has confirmed that the Israeli Ministry of Finance has transferred NIS 435 million (107 million euros) from the revenues withheld and collected on behalf of the Palestinian Authority. Mustafa explained during a meeting with his cabinet that efforts and communications with the Israeli side continue to recover the rest of the funds, which amount to about 6 billion shekels (1.47 billion euros), according to the Palestinian news agency WAFA.
Israeli Finance Minister Bezalel Smotrich has agreed to transfer the last three months of withheld revenue to the Palestinian Authority and extend the exemption to Israeli banks working with the Palestinian side for four more months. US State Department deputy spokesman Vedant Patel welcomed the move yesterday. “Our call is for Israel to extend the waiver for at least 12 months and release the remainder of the withheld revenue,” he said.
The transfer of funds would also be tied to approval by the cabinet led by Israeli Prime Minister Benjamin Netanyahu to legalize new outposts in the occupied West Bank and sanctions against senior Palestinian officials for supporting international legal proceedings against Israel. The Israeli authorities collect these funds on behalf of the Palestinian Authority and transfer them on a monthly basis, after deducting the costs of services such as electricity and water.
In recent years, these payments have been frozen on several occasions in the face of tensions in the context of the Palestinian-Israeli conflict. The waiver, which was set to expire at the end of June, allows Israeli banks to process payments in shekels for services and salaries linked to the Palestinian Authority, although under the agreement a significant portion of funds are excluded for employees residing in the Gaza Strip.