Finance Minister Moshe Kahlon is reviewing the agreement reached between the PA (Palestinian Authority) and the Israel Electric Company (IEC) by which the PA will pay it long overdue debt, which currently stands at NIS 1.7 billion. IDF Coordinator of Government Activities in the Territories (COGAT) Major-General Yoav Mordechai will be involved in the approval process with Kahlon. The agreement forgives NIS 1.2 billion of the dept.
The utility has cut power to portions of PA areas in a pressure tactic in the hope of collecting its debt. Over the years, as the PA continues to receive donor nation funds, Ramallah seems to prefer not to pay its electric bill while the Government of Israel does not permit the IEC to cut power to the PA for non-payment.
According to a Channel 2 News report, the PA is signaling that it will assume responsibility for future debts but Finance Minister Kahlon admits he is skeptical.
The debt will be paid in NIS 570 million payment. The balance will be paid in 48 installments. Portions of the debt, including interest and penalties have been deducted from the overall debt.
(YWN – Israel Desk, Jerusalem)
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2 Responses
But for the average citizen, they shut off the power after a couple of months, including of families of active IDF soldiers who are busy defending the country.
Is the PA taking advice from Donald Trump on how to deal with creditors? And should the US adopt Trump’s policies on (not) paying your debts?