Israel to resume tax transfers to Palestinians

Mar 25, 2013, 10:07 AM EDT
Israeli border policemen evict a Palestinian activist from an area known as E1 near Jerusalem, Sunday, March 24, 2013. Palestinian activists erected tents in the E1 area to protest Israeli plans for a new settlement in the area. (AP Photo/Nasser Shiyoukhi)
(AP Photo/Nasser Shiyoukhi)

RAMALLAH, West Bank (AP) — Israel's government says it will resume transferring tax revenues to the Palestinian Authority.

Israel's Prime Minister Benjamin Netanyahu made the statement on the eve of the Jewish Passover holiday on Monday.

The transfers were frozen to punish Palestinians after the U.N. endorsed a de facto Palestinian state in the West Bank, east Jerusalem and Gaza in November. Some of the money was released, but not on time and it appeared to be handed over as a result of international pressure.

The money, as much as $100 million a month, is key to the Palestinians' ability to pay tens of thousands of civil servants, the backbone of the Palestinian economy.

Jamal Zakout, adviser to Palestinian Prime Minister Salam Fayyad, says it's believed that Israel will now transfer the money regularly.