Al-Khodary told reporters in Gaza that the cash-strapped cabinet led by the Islamic Resistance Movement (Hamas) has been granted up to 70 million U.S. dollars from Arab countries. "There is a good news of support and consolidation for the Palestinian government," he said.

But the Palestinian National Authority will need some 120 million dollars every month to pay employees' salaries, he said. Al-Khodary said that Qatar will transfer 50 million dollars and Saudi Arabia has donated 20 million dollars, adding the Arab League collected a donation of 1 million dollars. According to al-Khodary, the money would be basically used to help the cabinet to pay the March salaries for more than 160,000 government employees.

As for reports that the U.S. administration has warned banks against transferring money to the Hamas-led government, al-Khodary said that all banks but one "do not show any objection to transfer of money."

But he did not disclose the name of the bank, adding the decision was the bank's own decision, not the U.S.. Since coming into power on March 29, the Hamas-led government has been challenged by a severe financial crisis after the United States, the European Union and Israel decided to boycott the cabinet.