Israel has agreed to resume transferring tax revenues to the Palestinian Authority to fund basic services and bolster the West Bank economy, and money has begun to flow, US Treasury Secretary Janet Yellen said.

“This must continue,” Yellen said in remarks prepared for a news conference, noting that Washington had been urging the Israeli government to release the so-called “clearance revenue” to the Palestinian Authority. She gave no further details, Reuters reports.

Palestinian leaders say their ability to govern has been effectively blocked by Israeli restrictions, including withholding of tax revenues due under the Oslo accords signed 30 years ago.

For months, the Authority has been unable to pay full public sector salaries because of a row over the refusal by the Israeli finance ministry to release part of the funds.

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