Israel unfreezes Palestinian funds

Palestinian Authority President Mahmoud Abbas said that he has reached an agreement with Israel in which essential tax revenue it collects for the Palestinians will be transferred after a four-month freeze.

Abbas initially rejected Israel’s plan to unfreeze the funds because it included a deduction to settle debts incurred by the Palestinian Authority. But Abbas said the full amount will be transferred.

Israel collects taxes and customs for the Palestinians, which account for 70% of the Palestinian Authority’s revenue, but it froze the transfers in January in retribution after the Palestinians applied to join the International Criminal Court.