Norway sees imminent deal to transfer tax funds between Israel and PA

An agreement to unfreeze tax funds earmarked for the Palestinian Authority that are held by Israel is "imminent", Norway's prime minister, whose country is working as an intermediary, said. 

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. But no payments have taken place since November, following the start of Israel's war.

On 21 January, Israeli officials said the cabinet had approved a plan for frozen tax funds earmarked for the Gaza Strip to be held by Norway instead of transferred to the PA.

"I think we are trusted by the parties to manage financial support to the PA in a responsible way," he said. "It has taken a lot of diplomatic work between Norway, the PA, Israel, the US, but I will say that we are very close, imminent."