An official of the Ministry of Finance of the Palestinian Authority told the al-Ayam newspaper that the direct and indirect cost to the PA economy from the past year of Arafat?s terrorist offensive totals $7 billion. Industry, tourism and agriculture, the official said, have suffered the greatest losses. Non-Islamic, foreign donations, with the exception of the European Union?s monthly $9 million, have all but ceased. However, the Islamic Bank, which operates a trust fund of Arab contributions for the PA, has transferred about $45,000 a month, according to al-Ayam.



Israel, for its part, has ceased transferring tax rebates, which were granted pursuant to previous agreements between the PA and Israel. The $800 million that is being withheld, al-Ayam said, may be used by the Israeli government to compensate Israeli victims of the PLO terrorist war.