Secret deal with Israel rescues Palestinian Authority from economic collapse

Israel has agreed to drop the taxes levied on the fuel supplied to the Palestinian Authority in a deal that DEBKAfile reports was discreetly negotiated on the sidelines of the Bahrain conference. The conference was called by the US to put in place elements of a thriving economy as part of the Trump peace plan. While PA leaders loudly condemned the plan and boycotted the conference, senior Palestinian and Israeli officials got down on the quiet to brass tacks on Prime Minister Binyamin Netanyahu’s proposal to save the PA from meltdown.
Last year, Israel began deducting from its clearance transfers to the PA the amounts diverted by Ramallah for paying out stipends to the families of suicide bombers and convicted Palestinian terrorists. PA Chairman Mahmoud Abbas (Abu Mazen) refused to accept the balance minus cutbacks, preferring to let the Palestinian economy go bust.
Under the deal proposed now by Netanyahu, Israel would continue to deduct those sums, but drop the taxes it levies on Palestinians fuel purchases. This would  release a revenue of around $50-55m per month to the PA treasury. Abbas agreed to open negotiations after studying the Israeli prime minister’s proposal.

It found the Palestinian Authority deep in debt. Since the cutoff of Israel’s transfers, the PA has been borrowing from banks to cover staff payroll. It reached its debt limit in June. In addition to bankrolling the Hamas regime in the Gaza Strip, Qatar also came forward with an additional $50m a month for the PA, half of which has just been paid into banks in Ramallah and Nablus, plus another $250m from banks in the oil emirate.

Following the influx of cash from Israel and Qatar, the PA was able this month to cover 60 percent of its payroll for staff in both the West Bank and Gaza Strip, especially members of the Palestinian security and intelligence services. Its debt to the banks still stands at $1.9 billion.

Washington and Jerusalem are cautiously hopeful that Netanyahu’s plan and Qatar’s contribution for pulling the Palestinian Authority out of a deep financial hole  – plus the Egyptian-Qatari effort to broker a truce with Hamas in the Gaza Strip – will combine to bring down the level of Palestinian terrorist violence, both from Judea and Samaria and against the Israeli communities living next door to Gaza. Even so, reduced-level attacks by Palestinian extremists determined to derail these arrangements are not ruled out.

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28 thoughts on “Secret deal with Israel rescues Palestinian Authority from economic collapse

  • Jul 15, 2019 @ 7:36 at 7:36

    If there ever is any hope for ending the cycle of violence and retribution, . . . it will come from the economic side: jobs, homes, cars, and futures in peace.

    The old saying of “follow the money” is fully applicable here. Give these folks an economic option, . . . for their own personal lives, . . . all will grab it.

    • Jul 15, 2019 @ 8:07 at 8:07

      Yup! Look at the Arab Israelis who have focused on education and economic growth and they are now found as Drs in hospitals, in business – in every sphere, living in nice homes and driving nice cars. It’s hrest for them and great for the country. No wonder they no longer vote for the Arab parties.

      • Jul 15, 2019 @ 21:41 at 21:41

        Why do u post the above when the plo gets away w such on a daily basis. Worst is they implement their words into action!!! BDS,infatada, to name just 2.

    • Jul 15, 2019 @ 8:12 at 8:12

      One Step For Palestinians Prosperity, One Leap For Mideast Peace!

    • Jul 15, 2019 @ 17:50 at 17:50

      Humus , Falafel and shakshuka will solve the Palestine – Zionist conflict … feed the stomach approach ,

    • Jul 15, 2019 @ 18:57 at 18:57

      It sounds more like a payoff to the mafia or Russian gangs.. It never ends well

    • Jul 15, 2019 @ 19:59 at 19:59

      the earlier crooked leader Arafat died filthy rich, $billionaire,so PLO should go after it, problem solved, surplus budget; another version is the incumbent is also over- greedy and want to outdo the earlier rascal…

    • Jul 16, 2019 @ 3:24 at 3:24

      Most would grab it. But Islam would rather murder it. 1,300+ years and this is who we know Islam is.

  • Jul 15, 2019 @ 8:09 at 8:09

    “England Arise, Join in the Chorus, Evermore upon our Country God will Pour his Rich Increase, Victorious in War shall be made Glorious in Peace”!

    • Jul 15, 2019 @ 11:09 at 11:09

      England, the first victim of a brutal Zionist occupation…

      ‘Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.’ (Daniel 11:36-39)

  • Jul 15, 2019 @ 10:17 at 10:17

    Hmmm…I wonder if the “palestinians” would do any favors for Israel?
    /sarcasm off

    • Jul 15, 2019 @ 15:36 at 15:36

      The Palestinians Authority is Accepting the Reality of America Unilateral Power is Paramount on the Global Stage Prevailing against Iran imposing Costs on Proxies. The Endgame on Iran is the same Cold War Dogma of “Preeminent Maximum Pressure”, that Israel has done on PA & HAMAS as well. Economics Matter!

  • Jul 15, 2019 @ 10:27 at 10:27

    If the Arabs of Judea-Samaria for once grasp the concept – quite simply self-intuitive – that the ONLY out they have from a life of dead-end poverty and ostracization from the world community is IF they love a future life of prosperity MORE than than they hate Israel.

    I know…that’s a heavy lift for a people raised on the milk of anti-Jew hatred, but maybe – just MAYBE – the message is beginning to resonate. They have a simple binary choice: be captives to their nihilistic hate of Jews or GET OVER IT and create for themselves the possibility of a future!

    • Jul 16, 2019 @ 7:46 at 7:46

      Mrs Liberty thinks she can feed and shelter everyone under her torch. This is true as long as a tube train is not blowing her skirt up forcing her to drop the torch and hold the skirt down, turning her into the flash attention of the world instead of the guiding light.

      Here in the middle east we are not under her torch at all… So the feeding and sheltering work very differently. Bring us the torch and lets see if we have what it takes to lift it up.

  • Jul 15, 2019 @ 11:13 at 11:13

    Let the PLO slip away into oblivion and bring in the Emirates plan whereby local clans rule over their own territories.

    • Jul 15, 2019 @ 12:13 at 12:13

      @Veni Vidi Agati,

      “whereby local clans rule over their own territories.”

      That works out just great in places like Somalia the result of which is a totally DISFUNCTIONAL government!

  • Jul 15, 2019 @ 11:27 at 11:27

    “…bring down the level of Palestinian terrorist violence, both from Judea and Samaria and against the Israeli communities living next door to Gaza. ” NEVER. They are inherent haters and enemies of Israel and bribing them only encourage further violence.

    Netanyahu needs to go. He intentionally flushed the Torah down the toilet. And he intends to join forces with Blue & White since they agree to go with Trump’s “piece” plan to divide the Land.

    • Jul 15, 2019 @ 12:02 at 12:02

      ” And he intends to join forces with Blue & White since they agree to go with Trump’s “piece” plan to divide the Land.”

      @Meir Itcha,

      Has any one informed the “Blue & White” party about this………………….where did you get such exclusive “insider” information from ????

  • Jul 15, 2019 @ 12:52 at 12:52

    Sure sounds (actually smells) like giving protection money to a terrorist organization …

  • Jul 15, 2019 @ 13:01 at 13:01

    Too bad this story could not be run in the Arab Press, and get the Palis to see their continued dysfunction w Abbas.

    It’s good news, welcome it

  • Jul 15, 2019 @ 13:29 at 13:29

    Arabs call for the death to Jews and worldwide attacks on the Jewish population and we talk about relieving their financial problems which stem from putting the generous welfare bamboozled from the world into terrorism and paying off murderers – encouraging more terrorism – are we meshuggeneh?

  • Jul 15, 2019 @ 15:20 at 15:20

    Appeasement never works in the long run. Let it collapse. What follows won’t be any worse.

  • Jul 15, 2019 @ 22:04 at 22:04


  • Jul 15, 2019 @ 23:02 at 23:02

    Arafat controlled a financial empire worth at least $3 billion. By the time of his death, he was down to his last $1 billion, according to Israeli intelligence estimates.

  • Jul 16, 2019 @ 3:26 at 3:26

    again giving money for Jewish Blood. It is a very cheap. Nathanyahou is making a big mistake that will bring him down unless he wakes up and smells the coffee. He must realize that you cannot work with these murderers and thugs. He must work to overthrow this government(PA) and replace it with democratic elected city councils only

  • Jul 16, 2019 @ 23:08 at 23:08

    They should let the economy collapse and the pA and others would come crawling. Then require the Palestinians to disarm as a condition of reinstating the payments.
    I’d also eliminate all cement/concrete materials transfers

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