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(Los Angeles Times) Maher Abukhater - After earning international praise over the last two years for its financial reforms, the Palestinian Authority is facing its worst cash crunch in years. Palestinian banks, which lent the authority about $200 million to cover shortfalls, have stopped making new loans. Aid from Arab nations was above $500 million in both 2008 and 2009, but dropped to half that level in 2010. So far this year, it has dropped to about $79 million. Polls show that Palestinians are now more concerned about jobs and the economy than they are about peace talks with Israel. The cash crunch is a reminder of the PA's heavy reliance on foreign aid, which accounts for about half of its more than $2 billion annual budget. 2011-08-16 00:00:00Full Article
Palestinian Authority Has Cash Crunch Amid Statehood Drive
(Los Angeles Times) Maher Abukhater - After earning international praise over the last two years for its financial reforms, the Palestinian Authority is facing its worst cash crunch in years. Palestinian banks, which lent the authority about $200 million to cover shortfalls, have stopped making new loans. Aid from Arab nations was above $500 million in both 2008 and 2009, but dropped to half that level in 2010. So far this year, it has dropped to about $79 million. Polls show that Palestinians are now more concerned about jobs and the economy than they are about peace talks with Israel. The cash crunch is a reminder of the PA's heavy reliance on foreign aid, which accounts for about half of its more than $2 billion annual budget. 2011-08-16 00:00:00Full Article
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