Palestinian cash crisis getting worse: minister

AP News
Posted: Jul 26, 2012 9:52 AM
Palestinian cash crisis getting worse: minister

RAMALLAH, West Bank (AP) — The Palestinian finance minister says that it is getting harder each month to keep his cash-strapped government afloat.

Nabeel Kassis's warning comes as the Palestinian self-rule government struggles with its worst financial crisis in years. The Palestinian Authority's survival is seen as key to any Mideast peace deal.

Kassis said in a Thursday interview that "after a while we will just become too weak to continue," without specifying what would happen.

The Palestinian economy is propped up by foreign aid, and Kassis says this dependence will continue unless the international community pushes to end Israeli occupation of Palestinian territories. Israel's restriction on Palestinian trade and movement are seen as the main impediment to growth.

There has been some growth, but it's been aid-driven and, according to the World Bank, unsustainable.