OSLO: The Norwegian government on Sunday said that Oslo has agreed to facilitate the transfer of frozen funds earmarked for the Palestinian Authority (PA) collected by Israel.
Under interim peace agreement reached in the 1990s, Israel’s finance ministry receives tax on behalf of the Palestinians and makes monthly transfers to the authority, but a dispute emerged over payments in the wake of the October 7 attack by Hamas.
Norway said that the solution will allow payments to resume and avert a financial collapse for the PA, allowing it to pay salaries and provide basic services such as schools and health care.
Norwegian Prime Minister Jonas Gahr Stoere said that the development is crucial to promoting stability in the region and for the Palestinian Authority.
Under the solution between with Israel and Palestinian officials, Norway will act as an intermediary for holding revenues that Israel has withheld since October 7.
Norwegian foreign ministry spokesperson in a statement said the portion of the revenue Norway will keep equals the portion that Tel Aviv estimates for Gaza.
Accessing revenue vital for PA survival
Accessing the revenue is vital to the survival of the Palestinian Authority, which has limited rule in the Israeli-occupied West Bank.
Several Western nations, including the United States, also want the authority to play an important role in the administration of the Gaza Strip when the war ends.
Israel on November 2, said it would proceed with a tax revenue transfer to the PA in the West Bank but would hold funds for Gaza.
Israeli officials said the Israeli cabinet on January 21, had approved a scheme for frozen tax funds bound for the Gaza Strip to be held by Norway instead of transferred to the PA.