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JewishJournal.com

September 12, 2012

Israel transfers money to PA to ease economic crisis

http://www.jewishjournal.com/israel/article/israel_transfers_money_to_pa_to_ease_economic_crisis

Israeli Prime Minister Benjamin Netanyahu ordered the transfer of some $63 million to the Palestinian Authority to help ease its economic crisis.

The transfer Tuesday evening came after Netanyahu consulted on the issue with Finance Minister Yuval Steinitz, and then asked his special envoy, Isaac Molho, to coordinate with the Palestinian leadership, according to a statement from the Prime Minister's Office.

The money is an advance on tax revenues collected for the Palestinian Authority by Israel.

"We are working on several fronts in order to help the Palestinian Authority cope with its economic problems," Netanyahu said earlier Tuesday during a meeting with Bulgarian Prime Minister Boyko Borissov. "We have made several changes in the taxation agreements. We are advancing certain transfers. We have also helped with Palestinian workers and with a series of other steps in order to make things easier for them.

"Of course, there is a global reality and it is also related to the internal management of every economy, but for our part we are making efforts to help the Palestinian Authority survive this crisis. I hope that they will succeed in doing so; this is in our common interest."

Palestinians have been staging demonstrations in the streets of the West Bank since last week to protest the extreme economic hardship. The protests turned violent and destructive late Monday, with thousands of protesters burning tires and attacking police in Hebron and Nablus. Protesters also reportedly smashed the windows of the municipal building and a police station in Hebron. Palestinian taxi, truck and bus drivers staged a one-day strike on Monday.

Civil servants did not receive paychecks for the month of August.

Palestinian Authority Prime Minister Salam Fayad announced measures Tuesday to ease the economic hardship, including lowering the value added tax and prices on diesel, gas and kerosene.

Israeli officials are concerned that the unrest over economics and frustration with the Palestinian leadership could turn into a third intifada directed at Israel, Reuters reported.

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