The Palestinian Authority faces a "serious financial crisis" following Israel's slapping economic sanctions on the beleaguered body, Palestinian leader Mahmoud Abbas told reporters Sunday night. "The Palestinian Authority has faced a serious financial crisis since the start of the month," Abbas told reporters.
The Israeli Cabinet overwhelmingly approved Sunday the imposition of a range of sanctions against the PA following formation of a government led by Hamas, officials said. The measures, which include a series of economic sanctions, went into force Sunday, a day after the inauguration of a Hamas-dominated Palestinian Parliament, a senior government official said.
The sanctions include a freeze on the monthly transfer of tax duties owed to the PA that are worth some $50 million and constitute around a third of the Palestinian budget. The money represents around 30 percent of the PA's budget and secures salaries of 140,000 government workers, including around 60,000 police and members of security services.