Israel in transfer of frozen Palestinian funds

Israel said on Wednesday it had released $100 million of the tariffs and tax monies it collects on behalf of the Palestinian Authority, which were frozen last year as punishment for the UN bid. But an Israeli official said it was a one-off measure to ease the financial crisis faced by the Palestinians and was not a sign that the transfers would be renewed. "This decision was taken by Prime Minister Benjamin Netanyahu because of the Palestinian Authority's very difficult financial situation," an official at the premier's office told AFP. "But this transfer is temporary and affects only funds owed for one month," he added, speaking on condition of anonymity. "The prime minister did not commit to continue these transfers." Israel in early December announced it would not transfer tax and tariff funds it collects for the Palestinians in response to their successful bid for upgraded UN membership, a move the Jewish state had fiercely opposed. Every month, Israel transfers tens of millions of dollars in customs duties which are levied on goods destined for Palestinian markets that transit through Israeli ports, and which constitute a large percentage of the Palestinian budget. The transfers are governed by the 1994 Paris Protocols which governs economic agreements between Israel and the Palestinians. But Israel often freezes the transfer of funds as a punitive measure in response to diplomatic or political developments viewed as harmful. The measure has deepened an already dire financial crisis faced by the Palestinian Authority, which has frequently been unable to make payroll for its employees over the last year. In response to Israel's freezing of the funds, the Palestinians have urged Arab nations to activate a promised "safety net" of $100 million a month to make up the shortfall. But despite pledging to deliver the money, funds have yet to materialise, leaving the PA unable to pay its thousands of government employees, who are still owed half their salaries from November and all their salaries from December.