São Paulo – Ministers of countries in the Arab League agreed on Sunday (9), at a meeting in Doha, Qatar, to transfer some US$ 100 million a month to Palestine. The Palestinian National Authority (PNA) should use the funds to manage the budget deficit, maintain basic services and pay wages to civil servants.
Although the transfer of funds to the Palestinians has already been agreed on, it is not clear how it will take place neither what country will contribute. According to the secretary general at the institution, Nabil Al Arabi, he and representatives of Qatar will meet with members of the governments of countries in the bloc to negotiate each one’s share. “I want an answer (regarding the value) in 15 days”, said Al Arabi, according to international news agencies.
Apart from Qatar, the Arab League also includes Algeria, Bahrain, the Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Somalia, Saudi Arabia, Sudan, Tunisia, the United Arab Emirates and Yemen. Syria has been suspended due to the conflicts in the country.
The fund transfer to Palestine had already been forecasted in a resolution approved by the Arab League in March, in Baghdad, Iraq. It was decided, however, that the funds would be disbursed now as, after the United Nations (UN) Assembly General’s approval of participation of Palestine as an “observer state”, on November 29, the government of Israel announced the suspension of fund transfers regarding exports of Palestinian products.
Palestine is living financial difficulties. PNA president Mahmoud Abbas has said that the state may “go bankrupt” if it cannot have access to money. In recent months, the government has been delaying employee wages.
In September this year, the International Monetary Fund (IMF) disclosed a study about the financial situation of Palestine in which it stated that the fiscal deficit in the territories of Gaza Strip and the West Bank was US$ 400 million and that if nothing is done the deficit would affect wage payment. According to the study, unemployment reaches 30% of the population in Gaza Strip and 16% of those in the West Bank.
In 2012, both territories are growing less than in 2010 and 2011. Also according to the Fund, one of the reasons causing the economic situation in Palestine to worsen in 2012 is what it considers the “strong drop” in donations that Palestine receives, mainly those from Arab nations.
*Translated by Mark Ament
