The Palestinian Authority has received crucial financial transfers from Israel

‘I am pleased that the Palestinian Authority this week received several major transfers from Israel with Palestinian clearance revenues. These funds are necessary to ensure that the Palestinian Authority does not collapse, that Palestinians receive vital services, and that teachers and health workers are getting their salaries’, said Norway’s Prime Minister Jonas Gahr Støre.

As a result of the temporary scheme between the Israeli and Palestinian authorities, facilitated by Norway, the first transfer from Israel to Norway was made on Monday.

This triggered the transfer of 407 million shekels, approximately NOK 1.2 billion, from Israel to the Palestinian Authority. More transfers are expected in the coming days.

Since the terrorist attack 7 October 2023, Israeli authorities have withheld large parts of the clearance revenues they collect on behalf of the Palestinian Authority. This has contributed to a critical financial situation for the Palestinian Authority.

In this extraordinary situation, Norway has, together with the parties, negotiated a temporary technical arrangement whereby Norway will act as an intermediary for the parts of the clearance revenues that Israel has withheld since 7 October.

Read more: Norway assists in scheme for crucial financial transfers from Israel to Palestine 

This means that the Palestinian Authority will receive the remaining revenues. The share that Israel will transfer to Norway will remain in a Norwegian account until the parties agree that this money can also be transferred to the Palestinian Authority.

’In the time ahead, Norway will facilitate a well-functioning arrangement. We will also continue our support to strengthen the Palestinian economy and institutions in other ways, including by mobilizing more financial support, working for a ceasefire and a political process. We will do what we can to ensure that a new Palestinian government succeeds and that there is a unified government for the West Bank and Gaza,’ says Norway’s Minister of Foreign Affairs Espen Barth Eide.

Facts about Palestinian customs and tax revenues

  • Under the Paris Protocol (a 1994 agreement between Israel and the Palestinian Liberation Organization), Israel collects Palestinian clearance revenues on behalf of the Palestinian Authority and transfers the funds to the Authority.     
  • These revenues account for about 65 % of the Palestinian Authority’s income.     
  • After 7 October, the Israeli Security Cabinet decided that part of the Palestinian clearance revenues would not be transferred to the Palestinian Authority in order to prevent payments to Hamas.   
  • The Palestinian Authority has responded by opposing all transfers from Israel unless Israel changes its decision. The situation has therefore been deadlocked in recent months.