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Palestinian Authority Faces Financial Crisis as Israel Blocks Funds

HeadlineFeb 24, 2015

The jury’s finding imposes $655 million in damages at a time when the Palestinian Authority faces a financial crisis over Israel’s withholding of more than $100 million in tax revenue. Israel has blocked the funds over the Palestinians’ decision to join the International Criminal Court. Secretary of State John Kerry has warned the Palestinian Authority’s survival may be under threat.

John Kerry: “If the Palestinian Authority ceases or were to cease security cooperation, or even decide to disband, as a result of their economic predicament — and that could happen in the near future if they don’t receive additional revenues — then we would be faced with yet another crisis that could also greatly impact the security of both Palestinians and Israelis. And that would have the potential of serious ripple effects elsewhere in the region.”

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