Palestinian Authority President Mahmoud Abbas meets with Arab League Secretary-General Ahmed Aboul Gheit (not pictured) in Cairo, Egypt, Jan. 31, 2020. Photo: Reuters / Mohamed Abd El Ghany.

i24 News – The Israeli government is reportedly currently in talks with the Palestinian Authority to transfer hundreds of millions of shekels to Ramallah, which is facing a major financial crisis, the Times of Israel reveals.

A deal worth 800 million shekels ($248.5 million) to the Palestinian Authority has been formulated, an Israeli official said on Friday.

Another official familiar with the matter said the deal was “practically done.”

A senior PA official, Ahmad Majdalani, confirmed that discussions over financial support were ongoing between the two sides. He said the funds would not be loaned, but rather an advance on the tax revenue that Israel pays to the PA.

“There are discussions around an advance on what is owed to us and not a loan,” said Majdalani.

The West Bank is currently experiencing a financial crisis due in particular to the coronavirus pandemic. The Palestinian economy has contracted by more than 11 percent this year.