JERUSALEM (Reuters) - Israel said on Monday it would restart regular monthly tax transfers to the Palestinian Authority, restoring vital funding days after U.S. President Barack Obama called for confidence-building steps towards peace.
The decision followed the announcement by the United States on Friday that it would deliver $500 million (329.4 million pounds) in annual aid to the Palestinians, almost half of which had been withheld by the U.S. Congress in response to the Palestinians' bid for statehood at the United Nations.
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