Netanyahu's Office: Israel to Transfer Blocked Palestinian Funds

Israel is to resume the transfer of tariffs and tax monies it collects on behalf of the Palestinian Authority, which were frozen last year as punishment for the U.N. bid, the premier's office said Monday.

Prime Minister Benjamin Netanyahu "has decided to authorize the transfer of fiscal revenues to the Palestinian Authority," it said in a statement, adding that the finance minister had already "charged officials with taking up the transfer of funds again."

A spokesman for Netanyahu said the decision was to take effect "immediately".

The decision comes days after a visit by U.S. President Barack Obama to the Holy Land and follow-up meetings with both sides by Secretary of State John Kerry, who has pushed for the funds to be released since taking up his post in February.

Israel in early December announced it would not transfer tax and tariff funds it collects for the Palestinians in response to their successful bid for upgraded U.N. membership, a move the Jewish state had fiercely opposed.

Netanyahu authorized a one-off release of $100 million at the end of January, with an official at the prime minister's office, citing the Palestinian's "very difficult financial situation," stressed at the time it was a temporary measure only.

Ahead of Obama's visit, the Palestinian Authority urged the world to step up financial aid and press Israel to allow economic development, over fears of "political collapse" due to Israeli fiscal strangulation.