The Palestinian Authority, in deep financial crisis since Israel froze tax transfers in February, said Thursday it had accepted a partial payment of just over half a billion dollars.

"An agreement was reached a few days ago with the Israeli side for transferring duties on oil and fuel which the Palestinian Authority bought in Israel to the amount of around two billion shekels ($568 million, 512 million euros)," Civil Affairs Minister Hussein al-Sheikh told AFP.

Israel in February decided to withhold around $10 million a month from revenues of some $190 million per month it collects on the PA's behalf, triggering Palestinian president Mahmoud Abbas to say he would accept either all or nothing.