PA official warns of worsening financial crisis
Published today (updated) 11/06/2013 14:21
http://english.farsnews.com/newstext.php?nn=9203181392

RAMALLAH (Ma'an) -- The Palestinian Authority deputy prime minister for
economic affairs said Tuesday that the financial crisis is getting worse, as
the new PA cabinet met for the first time.

"There is a major financial crisis and the PA is $4.2 billion in internal
and external debt," Muhammad Mustafa said during a news conference following
the cabinet meeting.

"We will start looking for sources of financial funds and will examine
spending and collect taxes to pay our debts on time."

The PA official also warned of a growing job crisis, with over 250,000
Palestinians currently unemployed, young people particularly affected.

"The government will work hard to create jobs, especially for the youth
sector through the launching of new projects," he said.

The PA owes $600 million to banks and $1 billion to international financial
institutions, Mustafa said, adding that the new cabinet is working on a
three year plan, starting with a 100-day short-term strategy.

The 15th Palestinian government headed by Rami Hamdallah was sworn in before
President Mahmoud Abbas last Thursday.

In March, the International Monetary Fund warned that the PA's fiscal
situation was "increasingly precarious," calling for urgent action to help
close a gaping budget deficit and to stabilize the economy.

The IMF said Israeli restrictions on movement and access were virtually
unchanged and continued to hamper growth.