The PA’s debts have climbed to $1.5 billion, said Shobaki. Citing statistics from prime minister Salam Fayyad’s government, he estimated that $500 million was needed in urgent aid to tackle the current crisis.
The Authority faces its worst financial crisis since it was founded in 1994, labor minister Ahmed Majdalani said at the start of July, warning that donor countries were not honoring their pledges.
AFP noted that Arab and other states have pledged around one billion dollars, of which the PA has received only $480 million.
The PA Prime Minister, Salam Fayyad, warned a few months ago that his governmentwould reduce expenses if donor countries fail to pay aid they pledged to the PA.
The International Monetary Fund (IMF) has denied a PA request, filed via Israel, for a $100 million bridging loan.
Fayyad approached Bank of Israel Governor Stanley Fischer in search of Israeli assistance with obtaining the loan earlier this year, but the IMF rejected Fischer’s request on the Ramallah-based PA’s behalf, saying it did not want to set a problematic precedent for loans by proxy, due to the PA’s near insolvency.