As donations dry up, PA forced to cut June paychecks

Civil employees face halved salaries, to be deposited in bank account later this week; PM Fayyad blames donor countries for crisis.

By
July 3, 2011 19:30
1 minute read.
PA Prime Minister Salam Fayyad speaks in W. Bank.

salam fayyad_311 reuters. (photo credit: REUTERS/Abed Omar Qusini)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Facing financial difficulties, the Palestinian Authority will pay only half salaries to its civil servants for June, PA Prime Minister Salam Fayyad announced on Sunday.

The half salaries will be deposited into the employees’ bank accounts on Wednesday.

Be the first to know - Join our Facebook page.


RELATED:
Palestinian efforts for sovereignty not limited to the UN
Hamas, Fatah reach deal on makeup of unity government

Fayyad attributed the crisis to failure of donor countries to meet their financial obligations to the Palestinians.

He noted his government has nevertheless succeeded in reducing its reliance on international aid to less than one billion dollars a year.

In the past, he said, the PA government used to get nearly two billion dollars a year from the international community.

Fayyad said the PA was now conducting consultations with Palestinian banks to persuade them not to collect full loan payments from civil servants.



He said the PA government preferred to pay half salaries than postpone the payments entirely.

“We’ve reached a point where we can no longer delay the salaries or take loans from the banks,” Fayyad said.

“That’s why we decided to pay half salaries with the hope that the employees would display understanding.”

Fayyad said the main reason behind the financial crisis in the PA was failure of the international community to provide funds.

He said that last year the PA’s deficit reached $100 million.

Since the beginning of this year, the deficit has reached $30 million each month, he said.

Fayyad said international aid to the PA has dropped by nearly one-third.

In the last month, the PA received $331 million out of $900 million that it was expecting from the international community, he said, adding this does not bode well for the second half of the year for the Palestinians.

He called on donor countries to quickly provide the needed funds to help the PA.

Related Content

July 22, 2018
Israel evacuates hundreds of Syrian White Helmets in humanitarian effort

By SETH J. FRANTZMAN