(MENAFN- Qatar News Agency) The International Monetary Fund on Saturday urged donors to meet their aid pledges to the Palestinian Authority (PA), warning that unless funding was forthcoming it would be forced to cut public wages and social benefits to address a deepening fiscal crisis.
The aid-dependent Palestinian economy had entered a "difficult phase" with a severe liquidity crunch worsening since last year due to a drop in aid from Western backers and wealthy Gulf states and Israeli restrictions on trade, said the IMF .
An IMF report prepared for a donor meeting on Palestinian aid in Brussels next week and carried by "The Jerusalem Post" daily newspaper on Saturday, estimated a financing gap of about $500 million. The Palestinian authority is relying on donor aid to cover its 2012 budget deficit projected to reach $1.1 billion.
Most Palestinian aid comes from the United States, the European Union and Arab nations, allowing the Palestinian Authority to pay the salaries of public workers and benefits.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.