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PNA in financial crisis
14/4/2006 10:28

Palestinian Minister of Economy Alaael-Deen al-Aaraj said yesterday that the cabinet does not oppose in principle bringing financial affairs of the Palestinian National Authority (PNA) to management of international organizations.

Al-Aaraj told reporters in Gaza that the cabinet was interested in cooperating with international aid organizations, including the United Nations for Relief and Works Agency (UNRWA) and the United Nation Development Program (UNDP). The two are operating in the Palestinian territories.

He said that the government will pay salaries as soon as possible once it secures a big part of the payroll. The cabinet still needs an urgent fund of 116 million U.S. dollars to pay for 150,000 employees, as March paychecks are two weeks overdue.

Al-Aaraj revealed that the United Arab Emirates, Saudi Arabia and Kuwait will transfer urgent funds to the PNA to help it overcome the financial crisis.

The aid will transferred by the Arab League, through which Algeria has already transferred 35 million dollars. The United States and the European Union cut off financial aid to the Palestinian government following Hamas took office in March.

Israel has also halted the monthly transfer of about 50 million dollars of tax revenues it collects on behalf of the PNA since Hamas won the parliamentary elections in January. Palestinian Financial Minister Omar Abdl Razeq vowed to sue the Israeli government for freezing monthly revenues that Israel levies for the PNA.

The money that Israel collects from goods passing through crossing points accounts for about 40 percent of the PNA payroll.



Xinhua News