Palestinian Authority Facing Serious Financial Crisis

Palestinian Authority Facing Serious Financial Crisis

Ramallah : Palestine | Jul 06, 2011 at 5:32 AM PDT
Views: Pending
Salam Fayyad Treds Carefully in Jerusalem

Palestinian Authority Prime Minister Salam Fayyad said his government has only enough money to pay half of salaries this month and appealed to “donors and our Arab brothers” to fulfill their pledges for funding.

Donors' failure to deliver pledged funds has left the PA with a $30 million shortfall that covers only about a third of the government's costs and a $585 million deficit. The PA has tried to make up the shortfall by borrowing from banks, "but the deficit that is accumulating from month to month has gotten to the point that it can no longer be addressed with bank loans," Fayyad said.

"Donor countries have only paid $330 million of the $971 million pledged for this year," Fayyad said. Approximately one quarter of the PA's $3.7 billion budget comes from foreign aid.

Oman, Algeria, and the United Arab Emirates are the only Arab countries that have paid so far.

The US and European Union have been making regular contributions.

Earlier this month, Israel halted the payments temporarily in response to a reconciliation deal between the Fatah party, which dominates the Palestinian Authority, and rival Islamist group Hamas, which runs Gaza.

The move, which violates international accords signed by Israel, provoked international criticism and Israel agreed shortly afterwards to resume the funds transfers.

Finally, the financial crisis “shouldn’t mean anything for the readiness for a Palestinian state.” Palestinian Authority President Mahmoud Abbas has said he plans to ask the United Nations to recognize a Palestinian state in September, Fayyad said.

1 of 27
Palestinian Authority Facing Serious Financial Crisis
Palestinian prime minister Salam Fayyad
saleh1966 is based in Gaza, Ġazzah, Palestine, and is an Anchor on Allvoices.
Report Credibility
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear

News Stories

  • Fayyad: PA Still Ready for State

      Israel National News
    Jul/06/11 Follow Israel news briefs on and The financial crisis in the Palestinian Authority does not mean that the PA is unready to manage a state, PA Prime Minister Salam Fayyad argued Wednesday. He claimed the crisis was a result of occupation and...
  • 'Financial crisis doesn't mean we’re not ready for state'

      Jerusalem Post
    Mohamad Torokman 'Financial crisis doesn't mean we're not ready for state' 07/06/2011 19:34 Salam Fayyad puts blame for crisis on failure of donor countries to meet financial commitments to PA, says only $331m. of $970m. promised to gov't was...
  • Hamas Says Abbas Not Serious About Reconciliation

      Israel National News
    Jul/07/11 Follow Israel news briefs on and Hamas blamed on Wednesday Palestinian Authority Chairman Mahmoud Abbas for being not serious about implementing the reconciliation agreement between Fatah and Hamas. Hamas leader in Gaza, Salah Bardawil,...
  • PA union chair accuses Fayyad of wasting public funds

      Jerusalem Post
    Bassam Zakarneh, chairman of the Palestinian Authority Workers' Union, on Tuesday launched a scathing and unprecedented attack on Prime Minister Salam Fayyad, accusing him of squandering public funds and refusing to take action against corrupt...
  • Financial crisis again for PA

      Al Ahram
    A Once again, Israel appears set to financially strangle the Palestinians in order to get from them the concessions it wants, writes Khaled Amayreh Another financial crisis has hit the Palestinian Authority (PA), affecting its ability to pay salaries...
  • Abbas postpones formation of unity government in bid to appease Western ...

    Palestinian leaders had apparently underestimated international opposition, particularly from the U.S., to any Hamas involvement in the government and are afraid that it will derail efforts to win the UN nod in September to establish a Palestinian...



More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Most Commented Reports

Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.