Cairo: Following the Israeli and US decisions to corner Palestine economically, the Arab League has come to the rescue of the crisis-ridden Palestine government, in the West Bank. The Arab League declared an aid of $100 million, every month, to the Palestinian government, active in the West Bank, under the leadership of Mahmood Abbas. The aid was announced in response to the appeal made by Mahmood Abbas.
Till date, the taxes on the Palestinian products was being collected by Israel. The collected tax amount was being handed over to the Palestinian government in the West Bank. The funds were sufficient to meet the expenses of the Palestinian government for half a month. But in February, Israel decided to stop transferring these funds to Palestine. Israel stopped the funds accusing that these funds were used to support the families of the terrorists and extremists languishing in Israeli jails.
This stoppage of funds created a financial crisis for the Abbas government in Palestine. France held discussions with Israel, attempting to break the shackles of the Palestinian government. But Israel justified the decision pointing to the rules. The World Bank warned that if a timely solution is not found for the current scenario, the crisis faced by the Palestinians, will deepen.
Against this background, Abbas appealed to the Arab League meeting, held on Sunday. In response, the Arab League announced a monthly aid of $100 million to Palestine. The Arab League claimed that this would soften the financial crisis, to a certain extent.