Arab League agrees to donate millions of dollars to PA

By JPOST.COM STAFF
December 9, 2012 17:41

 
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The Arab League on Sunday agreed to donate hundreds of millions of dollars in aid to the Palestinian Authority to make up for the organization's budgetary shortfall, Al Jazeera reported.

"The Qatari prime minister and the Arab League secretary-general will follow up the implementation of this resolution within two weeks," said chief negotiator Saeb Erekat in Doha, Qatar.

Thee Israeli government decided to withhold tax revenues belonging to the PA in response to the group's unilateral statehood bid at the United Nations. Interim peace deals task Israel with collecting taxes and customs duties on the Palestinian Authority's behalf amounting to around $100 million a month, on goods imported into the Palestinian territories.

The aid-dependent Palestinian economy in the West Bank faces financial crisis due to a drop in aid from Western backers and wealthy Gulf states, as well as restrictions on trade.

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