U.S. Provides $200 Million in Budget Support to Palestinian Authority
Date : 25/7/2009 Time : 11:56
http://english.wafa.ps/?action=detail&id=12846

RAMALLAH, July 25, 2009 (WAFA-PLO news agency)- The USA and the Palestinian
National Authority signed, Friday night at the Headquarter of the Prime
Ministry, an agreement of direct budget assistance to the PNA of $200
million.

The US Secretary of State Hillary Clinton, said via Video conference from
Washington that, the $200 million is a part of the $900 million pledge for
2009 that the she had announced at the March 2 donors' conference in Sharm
Al-Sheikh to address the immediate needs of Palestinians in the West Bank
and Gaza and support our longer-term approach of fostering the conditions in
which a Palestinian state can be realized.

“I wanted personally to announce the delivery of budget support to the
Palestinian Authority, under the leadership of President Abbas and Prime
Minister Fayyad, because what is at stake for the Palestinian people, for
the future of a Palestinian state, for the future security of Israel, and
for the region is so critical,” Clinton said. “This is important also to the
United States and the Obama Administration. Finding a peaceful solution to
the Israeli-Palestinian conflict and the broader conflict that has plagued
the Middle East for decades has been a priority for the President and me
from the very beginning of the Administration.”

Thanking the Secretary of State, PM Fayyad said “the $200 million assistance
package of yours represents the largest amount of external financial
assistance to be made available to the Palestinian Authority in a single
tranche by any donor toward any purpose since the inception of the PA.”

“The entire amount assistance is earmarked for budget support – the very
type of external assistance we need the most, particularly at this juncture,
given the severe financial difficulties that we have been facing for many
months now,” he added. “So your assistance couldn’t have been timelier, and
it will enhance our capacity to deliver vital and needed services to our
people in Gaza and in the West Bank. For all of this, we are grateful to
you, Madame Secretary.”

Prime Minister Fayyad and his government have undertaken comprehensive
reform of the PA’s public financial management structure and taken steps to
control government spending and increase transparency. These reforms have
been documented by repeated reviews conducted by the World Bank,
International Monetary Fund, and the U.S. Government.

The US Consul General, Jake Walles noted, “The PA’s proven track record in
managing donor funds in a transparent and accountable manner gives us great
confidence in providing direct budget support.”