Palestinian cash crisis

THE UN political chief warned yesterday that the worsening Palestinian financial crisis poses a growing risk “of a financial collapse of the Palestinian Authority”.

Rosemary DiCarlo told the UN Security Council that “a sustainable resolution” to the authority’s funding crisis is urgently needed. Israel is withholding about $11 million of the roughly $180 million a month in tax funds that it collects for the Palestinians, claiming that money was being used to support families of terrorists. The Palestinians, in protest, have refused to accept any of the tax transfers.