Israel to withhold $138 mln from Palestinians over prisoner payments

Israel said its security cabinet on Sunday decided to withhold $138 million (122 million euros) in tax transfers to the Palestinian Authority over its payments to prisoners jailed for attacks on Israelis. A statement from Prime Minister Benjamin Netanyahu's office said the withheld cash would be equal to that paid by the PA last year to "terrorists imprisoned in Israel, to their families and to released prisoners". Israel alleges the payments encourage further violence.

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