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Alert over financial crisis reveals Western threat to cut aid to PA

A member of Fatah's central committee has told Palestinian radio that there is an "accumulated financial crisis in the Palestinian Authority this year". Dr Mohammad Ashtyeh, who is also on the PA negotiating team, said that there is a need to address the crisis so as to make an amount of $500 million available until the end of the current year.


Nevertheless, Ashtyeh said, funds from the Arab states should arrive in the PA treasury following the latest donors' meeting. However, he revealed that some donors have warned that they will suspend their aid if no progress is made in the negotiations with the Israeli government. Some of the aid in question relates to the Palestinians' humanitarian needs, including education and health.

"There is a growing movement in some European countries to bring an end to funding for the Palestinian Authority," he added. "This means that we are heading into the next financial year in an undesirable condition, despite the existence of real Arab promises of support."

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