Foreign Minister Espen Barth Eide says Norway has agreed to act as an intermediary to help unfreeze tax funds earmarked for the Palestinian Authority (PA) that are held by Israel.
Under the terms of a deal reached in the 1990s, Israel collects tax on behalf of the Palestinians and makes monthly transfers to the PA pending the approval of the Ministry of Finance. But since November, taxes that would ordinarily be sent to the Gaza Strip have been frozen by the Israeli government.
On Sunday, Israel approved a plan for the taxes to be held by Norway instead of transferred to the PA.
“Work is now under way to try to establish the framework for such a solution. We are in dialogue with both the Israeli and Palestinian authorities and other stakeholders,” Barth Eide told Reuters, without giving further details.
He also expressed deep concern about the PA’s financial situation, which he described as “grave”.
Credit: aljazeera.com
