Hit by waning support from fatigued donor nations, the Palestinian Authority has been forced to borrow from banks to pay salaries to its 125,000 employees and may be unable to meet its February payroll, the economy minister said Tuesday.
| Oh, my heartstrings! Don't tug so hard! |
With unemployment rampant outside the public payroll, Palestinians could be facing unprecedented economic collapse after three years of conflict with Israel. "We took loans from the bank for the past couple of months to pay salaries," Palestinian Economy Minister Maher Masri told The Associated Press. "If this situation continues ... we will not be able to provide salaries next month." Masri did not disclose the size of the loans, but figures are likely to be made public when Palestinian Finance Minister Salam Fayad presents the 2004 budget to parliament next week. |