Palestinian Authority facing financial crisis

The Palestinian Authority is facing a severe financial crisis due to a massive budget deficit and the failure of Arab states to fulfill aid promises, the PA finance minister said Monday. Shukri Bishara told Ma'an that the PA faces an internal and external debt of around $5 billion, with external financial support failing to cover even 50 percent of that deficit. Arab states have also failed to fulfill financial promises to the PA, meaning a likely delay in paying civil services salaries, above all for teachers. The PA ministry of finance came under increased pressure earlier this year, with PA employees, health workers and teachers all launching strike action in protest against the late payment of salaries. In March, the International Monetary Fund warned that the PA's fiscal situation was "increasingly precarious," calling for urgent action to help close a gaping budget deficit and to stabilize the economy. The IMF said Israeli restrictions on movement and access were virtually unchanged and continued to hamper growth.