Coronavirus: Israel to lend money to the Palestinian Authority

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The economic crisis caused by the coronavirus is weighing on public finances in many countries, and the Palestinian Authority is no exception: it has seen its tax revenues decrease. It therefore negotiated aid with Israel which agreed to grant it a loan which could reach up to 210 million euros.

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From our correspondent in Jerusalem ,  Guilhem Delteil

Aid for the Palestinian economy had become a matter of survival, the Palestinian economy minister said. In accordance with agreements between the two parties, Israel collects import and export taxes on behalf of the Palestinian Authority.

Usually this tax revenue is around 750 million shekels, or about 200 million euros per month. But in April, they had already dropped by almost 30%. And they risk falling below the 500 million shekels mark once the month of Ramadan is over.

The Palestinian government considers the sum of 500 million shekels as a critical threshold. If customs taxes fall below, he fears that he will no longer be able to support the Palestinian economy in this period of crisis. For the past month and a half, he has been negotiating aid with the Israeli government.

In the end, the two parties, although engaged in a financial showdown over the payment of allowances to the families of Palestinian detainees - reached an agreement. For four months, between June and September, Israel will supplement Palestinian customs taxes if necessary. When they are less than 500 million shekels, Israel will provide a monthly supplement, up to a limit of 800 million shekels, 210 million euros, over the entire period.

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• Israel
• Palestinian territories
• Finance
• Taxation