News Summary: Palestinian fiscal crisis deepening

AP News
Posted: Sep 19, 2012 3:07 PM
News Summary: Palestinian fiscal crisis deepening

SUPPORT NEEDED: The World Bank warned of a deepening fiscal crisis in the Palestinian territories and appealed to donors to act urgently to prop up the Western-backed Palestinian Authority.

DWINDLING FUNDS: The bank said finances of the Palestinian Authority have been hurt by reduced donor funding, higher-than-expected spending on pensions and loans, and a revenue shortfall sparked by an economic slowdown.

CALL FOR INVESTMENT: The Bank concluded that sustainable Palestinian economic growth requires strong private sector investment. But it warned that such development is hampered because Israel heavily restricts Palestinian access to 60 percent of the West Bank.