The United States and Israel reached a landmark agreement on Monday, bringing an end to decades of economic and diplomatic wrangling and opening the way for the two countries to begin a period of normalization of relations.
The two sides agreed to work together on debt reduction measures, a landmark deal that could eventually lead to a permanent US-Israel economic and financial relationship.
It is a breakthrough in the long struggle to revive the US economy and reduce its dependency on Israel for its economic lifeline.
The agreement was reached after nearly a year of diplomatic wrangles between the two nations and was signed on the same day as the anniversary of the 1967 Six-Day War, when Israel captured the West Bank and Gaza Strip.
Under the terms of the deal, the US government will pay $1.2 billion to help Israeli farmers and small businesses to borrow money from the International Monetary Fund.
The money will be used to help the US farmers and other farmers in Israel with debt payments, the deal said.
Israel will also be able to make payments to the United States on the basis of the terms agreed on Monday.
The US government, meanwhile, will continue to support the US-Israeli alliance and promote trade between the countries.
The agreement also allows Israel to resume the construction of a fence along the border between the West and East Jerusalem.
Under pressure from Israel, the United Nations Security Council voted unanimously in March to cut the US contribution to the Israel-Palestine peace process in half, which will take effect in 2019.
The deal with the United Kingdom, which is the only major Western ally of Israel, comes after years of pressure from the White House to reverse course.
US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu have been at odds over how best to move forward with their longstanding policy of settlement building and a complete dismantling of the Jewish state’s settlements in the occupied territories.
Under Friday’s agreement, the two sides will begin the process of transferring $100 billion to a fund for Jewish settlement in East Jerusalem, with the money to be used for Israeli agriculture and to assist Israeli farmers.
The plan also includes $100 million to help US-based Jewish settlement companies, such as Bibi Capital and Efrat Capital, expand their operations in the West, with $25 million for each company to be given access to the money.
The money will help US companies increase their annual sales in the region by $1 billion and provide jobs to hundreds of thousands of Israelis, according to the agreement.
The final $100bn is to be put into a trust fund for the Jewish communities in the United State.
The fund will be run by the US Treasury Department and will not have any impact on US citizens, according a White House statement.
The United States will also contribute $1 trillion to the US Department of Agriculture and $5 billion to the World Bank.
The funds will be invested in infrastructure and job creation, with US-owned companies making investments in US-funded projects, the statement said.