Azzam Shawwa, governor of the Palestinian Monetary Authority (PMA)

PMA governor: Despite financial crisis, PA still capable of managing the situation

Ramallah (QNN) – Despite the financial crisis resulting from Israel’s decision to deduct millions of dollars from the Palestinian tax revenues and the Palestinian Authority’s (PA) refusal to accept the remaining tax funds if not complete, the PA is nevertheless still capable of managing its financial situation, today said Azzam Shawwa, governor of the Palestinian Monetary Authority (PMA).

He told PA official news agency WAFA that the Palestinian banking system is still strong and capable of dealing with the financial issue.

Shawwa said the PA is going to continue to borrow money from the banks, which showed a growth in its deposits, in order to continue to pay 50 to 60% of the salaries of its employees, which it may have to continue to do for the coming few months.

Nevertheless, he said, continuation of the crisis will make things worse, unless the Arabs come forward and provide the PA with the financial safety net they had promised or Israel ends its deductions policy from the Palestinian tax revenues.

The crisis started in February when Israel passed a law allowing it to deduct from the Palestinian money the equivalent of the amount the PA pays families of Palestinian prisoners and those killed or wounded by Israelis.

As a result, the PA said it will not accept the tax money, which amounts to around $200 million every month and covers two-thirds of the Palestinian budget, if incomplete.

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