GOI RELEASES MORE ATTACHED REVENUES TO PA

C O N F I D E N T I A L TEL AVIV 006406 SIPDIS E.O. 12958: DECL: 12/15/2014 TAGS: EFIN PREL KWBG IS ISRAELI PALESTINIAN AFFAIRS ECONOMY AND FINANCE SUBJECT: GOI RELEASES MORE ATTACHED REVENUES TO PA REF: A. TEL AVIV 5643 ¶B. TEL AVIV 6008 Classified By: AMBASSADOR DANIEL C. KURTZER FOR REASONS 1.4 (B,D) This message was cleared by ConGen Jerusalem. ¶1. (C) Summary. Finance Ministry Senior Advisor Rani Loebenstein informed Mission that Israeli courts will release in December an additional NIS 136 million in attached revenues related to acts of terror. Of this, NIS 16 million will be deducted to pay down PA debts to Israeli utilities. The MoF official had earlier predicted the courts would be loath to release such funds in view of the political impact. It appears the personal intervention of PA Finance Minister Fayyad with the Israeli courts was decisive. This brings the total amount of attached revenues (not counting utility deductions) released by Israeli courts to date approximately to NIS 523 million out of NIS 880 million, leaving Israeli courts to release NIS 357 million. End Summary. ¶2. (C) In separate meetings with EconCouns and Econ Deputy, Loebenstein said that PA Finance Minister Salaam Fayyad had personally contacted Israeli courts to request the release of attached revenues related to terror. In response to Fayyad's request, which was supported by the GOI, the courts had agreed to release NIS 136 million out of NIS 156 million attached for such acts, basing the decision on the argument that the original level of attachments was inappropriately large. Of this, the PA would pay down NIS 16 million of Israeli utility debts. According to Loebenstein, Israeli courts have yet to release approximately NIS 357 million in attached revenues. ¶3. (C) To date, Israeli courts have released the following attached revenues (all amounts in NIS millions): Tranche Number: 1 Date: November 2 Gross Amount Released: 144.5 Utility Deductions: 45 Net Payout: NIS 99.5 million Tranche Number: 2 Date: o/a November 15 Gross Amount Released: 130 Utility Deductions: 130 Net Payout: 0 Tranche Number: 3 Date: November 28 Net Payout: NIS 112.6 million Tranche Number 4 Date: December 16 or 19 Gross Amount Released: 136 Utility Deductions: 16 Net Payout: NIS 120 million Total Gross Attachment Payout to Date: NIS 523 million Total Net Attachment Payout to Date: NIS 332 million Undisbursed Attachments: NIS 357 million ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** KURTZER