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Gaza: The Palestinian Authority faces a financial crisis due to Israel halting tax revenues and the United States demanding aid be returned, President Mahmoud Abbas said on Sunday. "Unfortunately, the pressures have begun and the support and the aid started to decrease. Therefore we are currently in a real financial crisis," he said. Israel's cabinet has decided to permanently stop transferring some $50 million to the Palestinian Authority. The United States, Israel's biggest ally, has also asked the Palestinian Authority to return $50 million in aid to ensure it does not reach Hamas. Abbas said he would meet with Hamas leaders on Monday to discuss Israeli and US calls for the new Cabinet to recognise past peace deals.
"I would like to listen to them directly and know what their positions and opinion are and have a dialogue and dicussion with them over these positions," he said. The European Union, the largest donor to the Palestinian Authority, has also threatened to halt funds following Hamas's victory.
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