The Israeli Finance Minister Moshe Kahlon decided to transfer 500 million shekels in withheld tax money to the Palestinian Authority.

According to “Ynetnews,” after consulting with Defense Minister Moshe Ya'alon, Kahlon decided to issue thousands of additional work permits for Palestinians in the West Bank that would allow them to enter and work in Israel, as well as reduce commissions Israel charges from the Palestinians. Israel is also to provide the Palestinians with other services and is to take further steps that shall improve the economic conditions of the PA and prevent its collapse.  

Kahlon reached these decisions after his meeting with the Palestinian Finance Minister Shukri Bishara, who warned him that the PA was on the verge of economic collapse. Bishara said that the PA’s deficit was at 1.5 billion shekels. The 500 million shekels Israel is planning to transfer could help cover a third of the deficit.

On Wednesday, Kahlon met with Netanyahu and presented him with the measures he decided on. Netanyahu did not oppose any of them since he prefers to have Kahlon and Ya’alon appear as doing something for the benefit of the Palestinians, rather than appear so himself.