Report estimates financing gap of about $500 million, urges PA to cut expenditures; Aid donors meeting in Brussels next week
WASHINGTON – The International Monetary Fund on Saturday urged donors to meet their aid pledges to the Palestinian Authority, warning that unless funding was forthcoming it would be forced to cut public wages and social benefits to address a deepening fiscal crisis.
The IMF said the aid-dependent Palestinian economy had entered a “difficult phase” with a severe liquidity crunch worsening since last year due to a drop in aid from Western backers and wealthy Gulf states and Israeli restrictions on trade.











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