Norway agrees to help transfer frozen funds from 'Israel' to PA

By Al Mayadeen English
Source: Agencies
19 Feb 2024 01:57

The Norwegian Foreign Ministry confirms its readiness to "play a crucial role in preventing the Palestinian Authority from collapsing financially."

Palestinians mourn over their relatives killed in the Israeli bombardments of the Gaza Strip at Al-Aqsa Hospital in Deir al-Balah, Gaza, on Sunday, Feb. 18, 2024. (AP)

The Norwegian Foreign Ministry confirmed that it has agreed to help in the transfer of frozen tax funds allocated for the Palestinian Authority that were collected by "Israel".

It said in a statement that "the temporary scheme will play a crucial role in preventing the Palestinian Authority from collapsing financially."

Tax revenues are the main source of income for the Palestinian Authority, which is already struggling with financial complications to pay the salaries of its security forces.

After the onset of the war on Gaza, Israeli Finance Minister Bezalel Smotrich decided to suspend the transfer of all tax revenue funds.

This decision was later mitigated by the Israeli occupation Cabinet. It was decided that tax revenues would be transferred, except the portions meant for Gaza, which would be withheld by "Israel" as it tries to choke the enclave.

The Palestinian Authority, however, had rejected this proposal of a partial transfer of tax revenues, refusing to accept partial funds and insisting on the release of all Palestinian tax revenues.

But last month, the Israeli War Cabinet approved to "transfer [Palestenian] tax revenues to the Palestinian Authority" via Norway while deducting the amount dedicated to Gaza and freezing it in a bank in Norway.

The Israeli Public Broadcasting Corporation noted that the transfer will happen under the condition that none of these funds will reach the Gaza Strip, adding that the Israeli Ministry of Finance will freeze all financial transfers to Ramallah in case this guarantee was violated by the Palestinian Authority.

The Corporation also mentioned that Israeli occupation Prime Minister Benjamin Netanyahu discussed with Smotrich and the Minister of Strategic Affairs, Ron Dermer, the prospect of "transferring clearance funds to Norway, on the condition of ensuring that they are not transferred to the Gaza Strip."

Israeli ministers were informed that transferring funds allocated to the Gaza Strip to a third country is based on an "American request", in order for the Palestinian Authority to accept the remaining funds, and that this matter is "of great importance" to the US administration.

Smotrich has expressed opposition to the release of any of the funds, even indirectly, and has threatened to resign over the issue, which could put the prime minister's coalition government at risk.

"As long as I am finance minister, Israel will not transfer tax money to the Palestinian Authority," he said at the time.