RAMALLAH - The Palestinian Authority will pay its employees' salaries in full in August but still faces a financial crisis
which forced it to pay only half wages in July, Prime Minister Salam Fayyad said on Sunday.
Earlier on Sunday, the head of the public sector workers' union had raised the prospect of a strike in protest at the wage cuts. The union was due to meet on Monday to take a decision on possible industrial action.RELATED:
Hamas official denies there’s a money crisis
Abbas appeals to Arab League for financial aid
Fayyad said he expected full salaries to be paid on Tuesday.
"In view of the continued financial difficulties, payment of the
salaries in full will greatly limit the ability of the PA to meet other
needs during the coming month," he said in a statement, without going
Fayyad has blamed a fall in aid from Arab states for largely causing the
financial crisis. The PA continued to seek the foreign aid needed to
overcome the problem, he said on Sunday.
The PA relies on help from foreign states to pay the salaries of about
150,000 Palestinians in the West Bank and Gaza Strip and monthly
allowances to another 75,000 people.
The PA needs aid of $970 million to fill a gap in its 2011 budget. As of July 3, it had received only $331 million.