The Political-Security Cabinet approved in a telephone vote this evening (Thursday) the proposal of Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to extend by one year the indemnity for Israeli banks to contract with banks in the Palestinian Authority - in order to prevent the PA's collapse.

Sources close to Minister Smotrich revealed that he agreed to the extension following a commitment given from the Biden Administration not to pass a resolution in the Security Council recognizing a Palestinian state and to impose an American veto on any such resolution if it is raised in the council.

Smotrich recently ordered the automatic signing of the indemnities for Israeli banks that transfer money to Palestinian Authority banks, which until his term was granted automatically, to be blocked.

In June, a four-month extension was granted in exchange for the regulation of five settlements and the approval of 5,900 housing units in the settlements in Judea and Samaria.... Read More: Arutz-7