The Palestinian Authority on Monday reached a settlement with Israel Electric Corporation over Ramallah's 500 million shekel ($130 million) debt to the Israeli power company. The settlement, which is still being finalized by Finance Minister Moshe Kahlon and Coordinator of Government Activities in the Territories Maj. Gen. Yoav Mordechai, seeks to resolve the issue, which has been dragging out for years. The Palestinian Authority's outstanding debt has ballooned to NIS 1.7 billion ($450 million) and the settlement essentially forgives the remainder, to a tune of NIS 1.2 billion ($320 million). Israel Electric Corporation was forced to cut power to several major Palestinian cities in 2015 over the debt. Channel 2 News called the settlement "historic," adding the Palestinian Authority has agreed to "assume responsibility for any future debt" as well. Finance Ministry officials, however, were more skeptical, saying time would tell.
