Israel to transfer frozen funds designated for Gaza to third-party country

Israel's cabinet approved a plan for frozen tax funds earmarked for Gaza to be held by Norway instead of transferred to the Palestinian Authority, officials said.

Istaeli Prime Minister Benjamin Netanyahu said the cabinet decision on the tax funds was supported by Norway and the United States, which will be a guarantor that the framework holds.

Netanyahu's offices said the money, or any equivalent, will not be transferred "in any situation, except with the approval of the Israeli finance minister, and also not through a third party."

"The United States and Norway respect the decision of the political and security cabinet that ordered a halt to the transfer of Gaza funds to the Palestinian Authority. Therefore, the frozen funds will not be transferred to the Palestinian Authority, but will remain in the hands of a third country,” Netanyahu’s office said in a statement.

According to the statement, the United States will serve as a guarantor of the plan’s implementation.

“The money or its consideration will not be transferred under any circumstances, except with the approval of Israel’s finance minister, not even through a third party. Any violation of the agreement allows the finance minister to immediately freeze all of the Palestinian tax funds," the statement reads.

Under interim peace accords reached in the 1990s, Israel's finance ministry collects tax on behalf of the Palestinians and makes monthly transfers to the PA.