Olmert: Israel Ready To Free Some Palestinian Funds

JERUSALEM (AP)–Israeli Prime Minister Ehud Olmert on Monday said Israel is prepared to release seized Palestinian funds for “humanitarian” purposes, but ruled out a large-scale transfer of funds to the Hamas-led government.

Israel has withheld hundreds of millions of dollars of taxes it collects on behalf of the Palestinians since Hamas won legislative elections last January. The cutoff has contributed to an economic crisis in the West Bank and Gaza Strip.

Israel has previously released small sums of money for health care and other humanitarian uses. Olmert did not specify when any new funds would be released or how the money might be spent.