Israel to loan $228mn to Palestinian Authority to offset losses

JERUSALEM: Israel will loan $228 million to the Palestinian Authority to offset losses caused by the coronavirus pandemic, officials said.

Officials from Israel and Palestine have agreed on terms of the rare loan, which aims at making up for losses of tax revenues during the pandemic, an official with the Israeli Finance Ministry told Xinhua news agency on Monday.

The Hebrew-language Ha’aretz newspaper reported that under the agreement signed on Sunday night, the first cash transfer will be made at the end of May, followed by three additional consecutive monthly payments.

The Palestinian Authority did not immediately comment on the deal.

Last month, Palestinian Finance Minister Shukri Bishara said that government revenues were expected to decline by 60 to 70 per cent because of the health crisis.