Israel and the Palestinian Authority Monday have signed off on an agreement that will see Jerusalem set aside NIS 800 million ($228 million) for potential loans to Ramallah, in order compensate for the financial losses incurred by the coronavirus pandemic.
Israel’s Supreme Court was informed by Jerusalem on Thursday of the initiative, according to the Israeli daily Yisrael Hayom, saying that the funds would be transferred in several instalments over the next few months.
Under interim peace agreements, Israel collects taxes on behalf of the Palestinian Authority on imports and exports, and transfers the funds to the Palestinians each month. These transfers cover a large proportion of the Palestinian government’s budget.
The deal comes a month and a half after a meeting between Finance Minister Moshe Kahlon and his PA counterpart, Shukri Bishara, during which Bishara expressed concern over the hit that Ramallah’s economy would likely endure due to the pandemic, a PA Finance Ministry official and an Israeli official confirmed.
