Saudi Arabia and Qatar promised US$33 million in quick aid to ease a severe budget crisis in the Palestinian Authority in the wake of the Hamas election victory, officials said on Wednesday, but acknowledged they may not be able to pay their workers on schedule this week.
With Palestinian coffers already empty, Israel stopped its monthly transfer of tens of millions of dollars of tax money, while Western nations weigh whether to continue supporting the Palestinian Authority after Hamas, with its history of suicide bombings and rejection of Israel, forms a government.
Israel's decision on Wednesday to hold up US$45 million in taxes and duties it collected for the Palestinians last month was a blow that could cause unrest in the West Bank and Gaza, even before Hamas is chosen to form a government.
The 137,000 people on the Palestinian Authority payroll, including 60,000 security officers, were supposed to receive their pay yesterday. Even with promises of new aid, a Palestinian official said the checks would not be ready until Monday at the earliest.
Even a week's delay could mean hardship for large numbers of Palestinians. The Palestinian economy is in tatters after five years of violence with Israel. Unemployment is set at 22 percent, and even the meager salaries support extended families in many cases.
Failure to pay last month's salaries could pose the most difficult test yet for Hamas, which has resisted international demands to recognize Israel, disarm and renounce violence.
Israeli Foreign Ministry spokesman Mark Regev said Israel was "not out of sync" with the rest of the world in holding up the transfer. He said that in the past, when Israel suspected the Palestinian Authority was using funds to support violence, Israel put money into escrow accounts, releasing it later. He said that would be the practice this time as well.
Deputy Finance Minister Jihad al-Wazir said contacts are still in progress with the Israelis, and he was hopeful the funds could be transferred in the coming days. He said there are also contacts with world donors aimed at maintaining levels of foreign aid.
US State Department spokesman Sean McCormack said officials are discussing the issue with Israel.
Palestinian Economics Minister Mazen Sinokrot said Israel is in violation of interim peace accords, which require it to transfer the customs and taxes.
"The Israeli side is not permitted legally to freeze the money of the Palestinian Authority, which is the money of the Palestinian people," he said.
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