CCTV.com - CNTV English - CCTV News

PNA to suffer financial crisis if donors continue not to pay, officials say

07-28-2010 08:56 BJT

RAMALLAH, July 27, 2010 (Xinhua) -- Palestinian officials said on Tuesday that the lack of Arab donations to the Palestinian National Authority (PNA) this year might lead to a severe financial crisis in the upcoming months.

Palestinian Labor Minister Ahmed Majdalani told Xinhua that Arab states have only paid 20 percent of what they have pledged to give in aid to the PNA.

"Our Arab brothers are cutting off the financial supports when our European friends are honoring their pledges to financially boost the PNA," he said.

Majdalani denied that the western-backed PNA, which relies on international aid to meet its needs, is now suffering from a financial crisis, affirming that the situation is still under control so far.

"The situations is in hand till now, but it might worsen in the upcoming months if the Arabs will continue not to send funds to support the PNA's budget," he added.

The Palestinian cabinet, led by the U.S.-backed, former World Bank official, Salam Fayyad, urged donor countries, during its weekly meeting on Monday, to swiftly transfer cash to cover the deficit in its general budget.

The cabinet said that foreign aid payments were not enough to cover the budget deficit during the first half of 2010 compared to the total fund needed for the whole year.

The cabinet also stressed the necessity to take all the measures needed to prepare the 2011 budget to achieve the main objective of the government's medium-term financial policy not to depend on foreign donations to back the government's running costs.

The Palestinian government approved in March a 3.9 billion U.S. dollar budget for 2010.


Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program