'Agreement will benefit both sides'
Israeli suppliers vie for PA payments
Federation of Israeli Chambers of Commerce initiates move to offset Palestinian Authority debts to private Israeli suppliers
The Federation of Israeli Chambers of Commerce initiated a move to offset debts of the Palestinian Authority to Israeli suppliers.
In some cases the debts reached a few million shekels and caused Israeli businesses many financial difficulties.
"It doesn't make sense that Israeli suppliers doing business with the Palestinian Authority will suffer as a consequence of changing security policies under the responsibility of the government," said Federation President Uriel Lynn.
Lynn proposed that the government will agree to deduct Palestinians from funds transferred to the PA.
According to the proposal, the federation will gather uncashed checks received from the PA. "The agreement will work for the benefit of both sides: Supply of goods to the PA will continue and private suppliers will get paid," said Lynn.
The Israeli government decided last February to freeze all payments to the Palestinian government, but permitted the collection of debts from funds earmarked for the Palestinians. Following this decision, portions of PA-bound funds were allocated toward paying off the Israeli Electric Corporation, Mekorot (the Israeli National Water Company), hospitals, and oil companies.
