Palestinian Authority Prime Minister Salam Fayyad said on Wednesday that the
severe financial crisis his government is facing does not mean the Palestinians
are ill-prepared for statehood.
His announcement came as the PA civil
servants received only half of their salaries due to the financial
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Fayyad said he would continue his efforts to solve the
“This decision was taken because of the growing financial crisis
in the PA over the past year,” Fayyad said. He attributed the crisis to the
failure of donor countries to meet their financial commitments to the
Fayyad said the PA had received only $331 million of the $970m.
promised by donors, including some Arab countries.
He said it was ironic
that the current crisis had come at a time when the PA government had succeeded
in reducing its reliance on foreign aid by almost half – from $1.8 billion in
2008 to $970m. this year.
“The crisis does not undermine or cast doubt on
our preparedness for the establishment of the state,” Fayyad
“There are many countries that face difficulties and deficits
that oblige them to take measures to overcome their financial
crises. Palestine is not an exception. On the contrary, we are a people
living under occupation and suffering from division and its
Fayyad voiced hope that the Arab countries would help the
Palestinians overcome the crisis.
PLO Secretary-General Yasser Abed Rabbo
said the financial crisis in the PA was “unprecedented” and accused the Arab
countries of failing to meet their pledges to help the Palestinians.
Rabbo told the PA’s Voice of Palestine radio station that the Palestinians were
surprised by the Arab countries’ failure to assist them.
has become very complicated for the Palestinian Authority because of the failure
of the Arab countries to fulfill their financial promises,” he said. “This is
Abed Rabbo said the crisis would not prevent the PA from
proceeding with its plan to ask the United Nations in September to recognize a
Palestinian state along the pre-1967 lines.
He said the PA was convinced
it couldn’t rely on negotiations “to end the occupation because Israel does not
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