Israeli channel 11 revealed, on Sunday, that the Israeli Finance Ministry, prior to the elections,had transferred NIS 660 million to Palestinian banks as an attempt to impose a fait accompli on the Palestinian Authority to accept the incomplete tax revenues.
In February, Israel decided to cut the sum of money which it collects on behalf of and passes to the PA, who distributes it, in salaries to employees and prisoner families. Â The PA refused to accept the funds because Israel deducted the money allocated to families of the slain and prisoners, whom it calls terrorists.
The channel warned that the PA could be heading towards a collapse in economy, adding that Israeli Prime Minister Benjamin Netanyahu met with Minister of Finance Moshe Kahlon, to discuss ways to persuade the PA to accept the deductions.
PNN further notes that the cuts lead to a financial crisis, where the PA decided to pay its employees half of the salary and to reduce expenses, saying that Israel was waging a financial war by deducting money that is originally for the PA.