Palestinian Authority faces cash crunch

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http://english.aljazeera.net/NR/exeres/1B0A8AE8-5DA5-4481-98AD-A9AB0837BA78.htm

Palestinian Authority faces cash crunch


Monday 02 January 2006, 22:53 Makka Time, 19:53 GMT


The financial crunch coincides with worsening lawlessness




The Palestinian Authority (PA) has turned to Arab countries for help in ending what the Palestinian finance minister calls a suffocating financial crisis after European donors froze their funding.

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The Palestinians are heavily dependent on foreign aid from Western donors and Arab states. But with the exception of
Saudi Arabia, Arab countries have largely failed to keep their financial pledges to the Palestinians.
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After a conference in London last month, Western donors decided to withhold millions of dollars in aid after the Palestinians failed to carry out previously promised economic reforms

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