Israel to transfer funds to Palestinians

Israel will begin releasing some of the hundreds of millions of dollars in Palestinian tax money it has frozen for more than a year, in a gesture to the new Palestinian government, Israeli officials said today.

Miri Eisin, spokeswoman for Prime Minister Ehud Olmert, said at least $50m (€37m) would be sent to the government of Palestinian President Mahmoud Abbas. Israel is trying to bolster Abbas in his stand-off against the rival Hamas militant group, which violently seized control of the Gaza Strip last month.