Sunday 1 May 2011

Israel suspends cash to Palestinians after Hamas deal

 

Palestinian unity demonstration in Ramallah There has been growing pressure from Palestinians in the West Bank and Gaza to end internal divisions

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Israel has suspended tax transfers to the Palestinian Authority following a reconciliation deal between rival Palestinian factions Fatah and Hamas.
Israel's finance minister said payments would be kept until it was clear money would not go to militants in Hamas.
The sum, including customs and other levies, amounts to $94m (£56m) agreed as part of an interim peace deal.
The Palestinian Authority has asked foreign powers to stop Israel from blocking the transfers.
The tax transfer mechanism, which represents about 70% of revenues for the Palestinian Authority, is collected as part of interim peace deals agreed between Israel and Palestinian leader Mahmoud Abbas's Fatah movement during the 1990s.Continued

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