PA able to stay afloat until end of year due to financial aid
By Aluf Benn, Ha'aretz Correspondent
According to a report presented to politicians this week, the Palestinian Authority will be able to
function until the end of this year and will be able to pay its employees' salaries due to the
financial aid it receives from Arab countries and the European Union. The PA is aiming to mobilize
additional funds so that it will be able to function in the future. According to the report, the
financial aid is not being transferred to the PA on condition that there is a reduction in violence
The report states that the main source of financial aid to the PA is from Arab countries, which
flows in from funds established during the Arab Summit that took place in Cairo in October. The PA
has so far received $180 million of the $240 million agreed on at the Arab Summit in Amman at the
beginning of this year. Another $60 million has been pledged for the months of August and September.
These funds pay the salaries of the 130,000 PA employees.
Last week, the Arab League follow-up committee met in Cairo with PA Cairman Yasser Arafat taking
part in the deliberations. The committee decided to allot $45 million per month to the PA until the
end of the year.
The European Union recently renewed its transferral of funds to the PA after a six-month break. The
EU aid amounts to approximately 10 million Euros ($8.5 million) per month for six months. So far,
two such payments have been made. The Europeans have demanded that the PA uphold a number of
conditions concerning transparency and budget management.