Arab Today, arab today more aid needed to avoid palestinian cuts
Last Updated : GMT 04:19:25
Arab Today, arab today
Arab Today, arab today

More aid needed to avoid Palestinian cuts

Arab Today, arab today

Arab Today, arab today More aid needed to avoid Palestinian cuts

Washington - AFP

The International Monetary Fund urged donor countries Saturday to honor their promises to the Palestinian Authority, whose economy is entering a \"difficult phase\" and could further deteriorate. The Palestinian economy is experiencing a serious drop in liquid assets that has worsened since last year due to a reduction in aid from Western and Gulf countries, as well as trade and movement restrictions imposed by Israel, an IMF report said. The report, prepared for a meeting of donor countries in Brussels next week, estimated a financing gap of about $500 million. It said only $800 million of donor aid was disbursed to finance the 2011 recurrent budget, compared to $1 billion anticipated. And development budgetary aid stood at just $169 million, compared to a budgeted $500 million. \"These shortfalls, in addition to lower-than-expected tax revenue in the context of a slowdown in economic growth, led to the accumulation of $0.5 billion in domestic payment arrears to the private sector and to the public pension fund,\" the report said. It pointed to an increase in domestic bank borrowing by some $140 million, which raised government debt to the banking system to $1.1 billion, or 11 percent of GDP. And while the 2012 draft budget plans to reduce the recurrent deficit by three percentage points of GDP, \"there remains a substantial financing gap, projected at $0.5 billion,\" the IMF warned. \"There is little scope to cover that gap through further arrears accumulation to the private sector or borrowing from commercial banks, given the existing large stock of debt to businesses and banks.\" It said there was a \"high risk\" that the gap would trigger cuts in wages, social transfers and other essential spending. The IMF called for \"concerted efforts\" from the Palestinian Authority, the Israeli government and donor countries to bridge the financing gap. \"It will be very difficult for the PA to cover the 2012 financing gap through austerity alone, without the prompt pledging and disbursement of additional aid,\" the report added.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today more aid needed to avoid palestinian cuts Arab Today, arab today more aid needed to avoid palestinian cuts

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today more aid needed to avoid palestinian cuts Arab Today, arab today more aid needed to avoid palestinian cuts

 



Arab Today, arab today Etiquette expert calls for short visits

GMT 16:21 2017 Monday ,26 June

Etiquette expert calls for short visits
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday