Palestinian Prime Minister Muhammad Shtayyeh told the new head of the IMF's local office on Tuesday that Israel is "systematically destroying the two-state solution."

In a meeting in his Ramallah office, Shtayyeh said that "Israeli occupation is the main obstacle to the development process in Palestine," citing control of lands, borders, the labor market, and infrastructure.

The meeting was held with the new head of the International Monetary Fund's mission to the West Bank and Gaza Strip, Christine Gerling, and in the presence of former President Alexander Tiemann and the International Fund's resident representative, Thomas Laursen.

"Israel is working to systematically destroy the two-state solution, and perpetuate the colonial relationship imposed on us by the reality of the occupation," Shtayyeh added.

Despite this, Shtayyeh said that the Palestinian Authority is trying to implement the IMF's reform agenda across every level, in order to the make the economy more productive and improve services.