Palestinian Authority Faces 'Worst' Fiscal Crisis

By JTA

Published July 02, 2012.
  • Print
  • Share Share

The Palestinian Authority is facing its “worst financial crisis” yet, according to a PA official, because of a foreign aid shortfall and the rejection of a $100 million loan by the International Monetary Fund.

Unless the PA finds a way to close its budget gap, PA Labor Minister Ahmed Majdalani said, the delay in aid from Arab donor nations will render the PA unable to pay its employees’ July salaries and its debts to private businesses, according to the French news agency AFP.

In an attempt to help ease the PA’s budget problems, Israel recently asked the IMF for a bridge loan of $100 million on the PA’s behalf. The IMF denied the request, saying it did not want to set a precedent of one state receiving a loan on behalf of a non-state body, Haaretz reported.

PA Prime Minister Salam Fayyad and Bank of Israel Governor Stanley Fischer, both former IMF officials, had decided that Israel would ask for the bridge loan because the Palestinian Authority is not a member state and cannot receive financial support from the fund.

Al-Arabiya reported that a delay in salary payments would be particularly sensitive now with the Muslim fasting month of Ramadan beginning in mid-July.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Why does ultra-Orthodox group Agudath Israel of America receive its largest donation from the majority owners of Walmart? Find out here: http://jd.fo/q4XfI
  • Woody Allen on the situation in #Gaza: It's “a terrible, tragic thing. Innocent lives are lost left and right, and it’s a horrible situation that eventually has to right itself.”
  • "Mark your calendars: It was on Sunday, July 20, that the momentum turned against Israel." J.J. Goldberg's latest analysis on Israel's ground operation in Gaza:
  • What do you think?
  • "To everyone who is reading this article and saying, “Yes, but… Hamas,” I would ask you to just stop with the “buts.” Take a single moment and allow yourself to feel this tremendous loss. Lay down your arms and grieve for the children of Gaza."
  • Professor Dan Markel, 41 years old, was found shot and killed in his Tallahassee home on Friday. Jay Michaelson can't explain the death, just grieve for it.
  • Employees complained that the food they received to end the daily fast during the holy month of Ramadan was not enough (no non-kosher food is allowed in the plant). The next day, they were dismissed.
  • Why are peace activists getting beat up in Tel Aviv? http://jd.fo/s4YsG
  • Backstreet's...not back.
  • Before there was 'Homeland,' there was 'Prisoners of War.' And before there was Claire Danes, there was Adi Ezroni. Share this with 'Homeland' fans!
  • BREAKING: Was an Israeli soldier just kidnapped in Gaza? Hamas' military wing says yes.
  • What's a "telegenically dead" Palestinian?
  • 13 Israeli soldiers die in Gaza — the deadliest day for the IDF in decades. So much for 'precision' strikes and easy exit strategies.
  • What do a Southern staple like okra and an Israeli favorite like tahini have in common? New Orleans chef Alon Shaya brings sabra tastes to the Big Easy.
  • The Cossacks were a feature in every European Jewish kid's worst nightmare. Tuvia Tenenbom went looking for the real-life variety in Ukraine — but you won't believe what he found. http://forward.com/articles/202181/my-hunt-for-the-cossacks-in-ukraine/?
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.