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Sunday, 3 July 2011 - Financial crisis forces Palestinian wage cuts |
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    Edition: U.S. Article Comments (0) Full Focus Photos of the week Our top photos from the past week.  Full Article  Follow Reuters Facebook Twitter RSS YouTube Read Minnesotans frustrated, angry over state government shutdown 02 Jul 2011 Lawyers get last chance to sway jurors in Casey Anthony trial 10:50am EDT More questions raised about Strauss-Kahn accuser | 02 Jul 2011 Dealtalk: Google bid "pi" for Nortel patents and lost 01 Jul 2011 Florida state workers get pink slips, more cuts ahead 01 Jul 2011 Discussed 132 Minnesota government shutdown begins after talks fail 99 White House snubs McConnell invitation to Obama 86 U.S. cost of war at least $3.7 trillion and counting Watched Hefner's revenge; Ryan Reynolds stops traffic Fri, Jun 17 2011 A Tokyo-Paris flight in under three hours on the horizon Fri, Jun 24 2011 Monaco's Prince Albert marries Fri, Jul 1 2011 Financial crisis forces Palestinian wage cuts Tweet Share this Email Print Related News Greece backs first austerity package, violence worsens Wed, Jun 29 2011 Prospects improve Greek austerity plan will pass Tue, Jun 28 2011 Banks move closer to deal on Greek bailout Fri, Jun 24 2011 Oil dives to 4-month low as emergency stocks unleashed Thu, Jun 23 2011 West taps oil reserves to boost economy; prices slump Thu, Jun 23 2011 Analysis & Opinion Israel targets top rabbis for anti-Arab incitement backing “King’s Doctrine” US muni bond tax exemption is accident of history Related Topics World » German Foreign Minister Guido Westerwelle (L) shakes hands with Palestinian Prime Minister Salam Fayyad during their meeting in the West Bank city of Ramallah June 14, 2011. Credit: Reuters/Mohamad Torokman RAMALLAH, West Bank | Sun Jul 3, 2011 11:40am EDT RAMALLAH, West Bank (Reuters) - The Palestinian Authority can only pay employees half their salaries this month because of a shortfall in foreign aid which it needs for its financial survival, the prime minister said on Sunday. Salam Fayyad appealed to donors to meet their financial pledges. His administration relies on budget support to pay salaries to 150,000 Palestinians in the West Bank and the Gaza Strip and monthly allowances to another 75,000 people. Fayyad identified a shortfall in funding from states in the region, an apparent reference to Arab countries, but would not say which governments he was talking about. "What we intend to do is to pay half (salaries) ... in the hope that we can complete the payment of this obligation when enough resources are made available allowing us to do that," he said. "This will happen when enough foreign assistance arrives." "The drop off has been in contributions from the region," he added during a news conference at his office in Ramallah. So far in 2011, the PA had received $331 million of $970 million pledged by international donors. The PA faced a funding shortfall of $30 million a month and could no longer resort to borrowing from banks to cover the gap, Fayyad said. It is the second time in two months that the Palestinian Authority, which exercises limited self-rule in parts of the Israeli-occupied West Bank, has faced difficulty in paying salaries. In May, the PA was unable to pay wages when Israel temporarily withheld tax revenues it collects on the PA's behalf, citing concern the funds would reach the Islamist group Hamas following a unity agreement with President Mahmoud Abbas. It was the first time the PA, which is headed by Abbas, had failed to pay salaries on time since 2007. Fayyad said Arab states had contributed $79 million of the funds received in 2011, the transfers coming from the United Arab Emirates, Oman and Algeria. He detailed contributions for 2011 which showed that Saudi Arabia, which paid $146 million last year and $241 million in 2009, had yet to pay anything this year. Arab states were blamed for a PA financial crisis last year, though the Palestinian government never failed to pay salaries and a $100 million contribution from Saudi Arabia in October helped it meet commitments. (Reporting by Tom Perry; Editing by Jon Boyle) World Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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