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(Jerusalem Post) Herb Keinon - Following drawn out negotiations and U.S. pressure, Israel transferred NIS 130 million in frozen tax revenue to the Palestinian Authority on Friday, the first of what are expected to be monthly installments. Since the summer, Israel has transferred some NIS 270m. to the PA in three installments, but there was criticism that some of this money was being misused. One senior Israeli diplomat said the U.S. is acting as a guarantor that the money will not go to support terrorism. The U.S. Agency for International Development (AID) will train PA financial officers and audit where the money is going. The system of transfer on a monthly basis will allow Israel to stop payment if it feels the funds are being misused. The U.S. wants to show that while it is not supportive of the current PA leadership, it is concerned with the plight of the Palestinian population. One senior Israeli official said the timing of the payments is not unrelated to Israel's request for U.S. loan guarantees and increased financial assistance. 2002-12-11 00:00:00Full Article
Israel Begins Monthly Transfer of Funds to PA
(Jerusalem Post) Herb Keinon - Following drawn out negotiations and U.S. pressure, Israel transferred NIS 130 million in frozen tax revenue to the Palestinian Authority on Friday, the first of what are expected to be monthly installments. Since the summer, Israel has transferred some NIS 270m. to the PA in three installments, but there was criticism that some of this money was being misused. One senior Israeli diplomat said the U.S. is acting as a guarantor that the money will not go to support terrorism. The U.S. Agency for International Development (AID) will train PA financial officers and audit where the money is going. The system of transfer on a monthly basis will allow Israel to stop payment if it feels the funds are being misused. The U.S. wants to show that while it is not supportive of the current PA leadership, it is concerned with the plight of the Palestinian population. One senior Israeli official said the timing of the payments is not unrelated to Israel's request for U.S. loan guarantees and increased financial assistance. 2002-12-11 00:00:00Full Article
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