The Palestinian Authority (PA) says that it will comply with a New York court's ruling to pay terror victims' families while the organization appeals a ruling.

Senior PA official Hanan Ashrawi told AFPTuesday that the amount would be paid despite financial troubles.

"PA and PLO [Palestinian Liberation Organization] are in serious financial difficulty, but we have to pay," she said. "We are appealing, and in order to appeal, we have to post bail."

An Israeli organisation representing families of the attack victims, Shurat Hadin, criticized the amount as far too small on Tuesday.

Its chairwoman, Nitsana Darshan Leitner, said in a statement that US officials had abandoned "innocent citizens affected by terrorism" in favour of "the perpetrators of Palestinian suicide attacks."