UN: Palestinian Authority faces risk of financial collapse

UNITED NATIONS – The U.N. political chief is warning that the worsening Palestinian financial crisis poses a growing risk "of a financial collapse of the Palestinian Authority."

Rosemary DiCarlo told the U.N. Security Council on Monday that "a sustainable resolution" to the authority's funding crisis is urgently needed.

Israel is withholding about $11 million of roughly $180 million in tax funds that it collects monthly for the Palestinians, claiming that money was supporting families of terrorists. In protest, the Palestinians have refused to accept any of the tax transfers.

In addition, the U.S. cut millions of dollars in funding for the Palestinians.

DiCarlo called on both sides to address the underlying causes of the crisis, implement bilateral agreements and avoid actions that undermine security and stability for both Palestinians and Israelis.