Israel questions cash transfers to Palestinians

"We have practical problems that we have to deal with as a matter of fact next week," Joseph Bachar, director general at the finance ministry, told the World Economic Forum in Switzerland.

Palestinian Economy Minister Mazen Sinokrot said the Palestian Authority faced a financial crunch as early as next week when it has to find $100 million worth of salaries for government employees.

"Next week we will have to pay salaries for around $100 million dollars. Where these salaries should come from for 135,000 employees?" he said. "If those salaries are not coming, this is a message for violence."

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