Sunday, July 26, 2009

US transfers $200 million in aid to PA

The United States has announced transferring a $200 million aid package to the Western-backed Palestinian Authority to help ease a growing budget deficit.

US Secretary of State Hillary Rodham Clinton made the announcement in a video conference with Palestinian Prime Minister Salam Fayyad based in the West Bank.

Fayyad was appointed prime minister by acting Palestinian Authority Chief Mahmoud Abbas after the democratically-elected Hamas government took control of the Gaza Strip. People in the already impoverished Palestinian sliver have been suffering from a tight Israeli-blockade following the takeover for their steadfast support of Hamas resistance movement.

Fayyad said that the reasons for the shortfall include Israel's restrictions on the Palestinian economy, the border blockade of the Gaza Strip and the failure of some donor countries to make good on their aid pledges.

The money is not new assistance, but part of 900 million U.S. dollars in U.S. funds that Clinton pledged at a donors conference in Egypt's Red Sea resort of Sharm el-Sheikh in March, an official told Reuters.

With Friday's aid transfer, donor countries have given the Palestinian government $606 million in budget support this year, covering only about one-third of the estimated deficit of $1.45 billion for 2009, Fayyad said.

"We have received aid, but not enough to deal with our needs, and we faced sharp economic difficulties throughout the last months," Fayyad told reporters.

During the conference Clinton expressed support for the Palestinian Authority and called on all nations to support Mahmoud Abbas' government.

"I call on all nations that wish to see a strong, viable Palestinian state, living in peace and security with its neighbors to join us in supporting the Palestinian Authority. The Palestinian Authority has proven to be a reliable partner for peace," she said.

Washington pledged in March during a donor's conference in Egypt to transfer $900 million to Palestinian Authority.

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