Israeli war minister Avigdor Lieberman on Thursday evening declared the Palestinian National Fund (PNF), which is an affiliate of the Palestine Liberation Orgnization (PLO), a terror organization.

The decision is considered the first of its kind since the signing of the Oslo accords in 1993.

According to Israel’s Channel 7, Lieberman justified the decision by saying that the PNF provides millions of shekels in salaries for Palestinian prisoners and families of “terrorists” (martyrs).

He described the prisoners and families of martyrs as entities responsible for serious terrorist activity against Israel and Israeli citizens.

He accused the PNF of playing a role in the Palestinian Authority’s economic support for “terrorists” who committed attacks against Israelis, and serving as a delegate in the transfer of a significant amount of funds to them.

According to a statement released by his office, steps will be taken to seize the fund’s property and assets, both in Israel and abroad.

PLO chairman Mahmoud Abbas appointed Ramzi Khouri in 2005 as director of the PNF.

The PNF was founded in 1964 by members of the PLO in order to serve as the body which will manage the funds of the Palestinian people and their institutions. The person who heads the fund was unofficially considered the Palestinian finance minister.

The PNF’s sources of funding were defined as taxes collected from salaries of Palestinian citizens working in the Gulf, donations from businessmen, donations from Arab and other states, from organizations, profits from investments in economic projects and more.