Israeli authorities have recently decided to release half a million Israeli shekels ($126m) to the Palestinian Authority (PA) treasury on condition that the PA stops “incitement” and blaming Israel before international bodies, Felesteen newspaper reported on Friday.

The newspaper said that the Israeli authorities also agreed to issue thousands of work permits for Palestinian workers, noting that both decisions were taken by Finance Minister Moshe Kahlon after discussions with Prime Minister Benjamin Netanyahu and Defence Minister Moshe Yaalon.

The sources said Kahlon believes that easing the PA’s economic hardship would create hope for the Palestinians and lead to a decline in the ongoing wave of unrest.

It also said that the release of the money is conditioned by PA President Abbas condemning attacks carried out by Palestinian youths against Israeli targets.

Last week, Kahlon met with the PA Financial Minister Shukri Bsharah, who warned that the PA is on the verge of collapse due to the difficult economic conditions. Its deficit now stands at NIS1.5bn ($380m).

Recently, Israel’s Channel Ten TV revealed that the authorities were planning to ease the restrictions imposed on Palestinians in the occupied territories in return for increased security cooperation with the PA.

Channel Ten also reported that a series of “successful” meetings had taken place between Kahlon and his PA counterpart which resulted in the latest deal.

(MEMO)