Palestinian Minister of Finance Omer Abdel Razeq said yesterday that the
March salaries to government employees would be paid by mid April despite severe
financial shortages.
"We will pay the salaries, with about 80 million U.S. dollars of aid to be
delivered soon by Saudi Arabia, Kuwait and the United Arab Emirates in a bid to
alleviate the financial crisis that the government is suffering," Abdel Razeq
told reporters.
He also denied media reports which said that the March salaries were the last
money to be paid to government employees since there would not be enough money
to foot the wage bill.
"The cabinet counts on the pledges made by both Arab and Islamic worlds to
continue support the Palestinians and their cause," Abdel Razeq added.
On Wednesday, Palestinian Prime Minister Ismail Haneya said at the first
meeting of his Hamas cabinet that the Palestinian treasury was empty and that
the new government had inherited large amounts of debt from its predecessor.
Hamas, or the Islamic Resistance Movement, defeated the dominant Fatah
movement, which had long run the Palestinian government, in the January
legislative elections. The group then single-handedly formed a new government
and the new cabinet was sworn in on March 29.
Following the sweeping election victory of Hamas which is sworn to Israel's
destruction, the Israeli government halted the monthly transfer of about 50
million U.S. dollars of tax revenues it collects on behalf of the Palestinians
to the Palestinian government.
Meanwhile, the already cash-strapped Palestinian government is also facing
threats by key international donors to cut off aids unless Hamas renounces
violence, recognizes Israel's right to exist and accepts interim peace deals.
The new government is due to pay about 120 million U.S. dollars of monthly
salaries to about 200,000 government employees and security forces
personnel.