Israel unsuccessfully sought $1bln IMF loan for PalestineJuly 2, 2012 - 15:00 AMT PanARMENIAN.Net - Israel unsuccessfully sought a $1 billion loan from the International Monetary Fund (IMF) for transfer to the Palestinian Authority to prevent its financial collapse, Israeli and Palestinian officials said on Monday, July 2. The IMF turned down the request, Reuters reported citing Israel's Haaretz newspaper, because it did not want to set a precedent of one state getting a loan on behalf of a none-state body. The aid-dependent Palestinian economy in the West Bank is facing a deepening financial crisis due to a drop in aid from Western backers and wealthy Gulf states as well as Israeli restrictions on trade. "We attempted to obtain a loan of $1 billion from the IMF through Israel. We didn't succeed," a senior Palestinian official, who spoke on condition of anonymity, told Reuters. A source in Israeli Prime Minister Benjamin Netanyahu's office confirmed that the IMF turned down Israel's loan request on behalf of the Palestinians. The source gave no other details. Haaretz said Palestinian Prime Minister Salam Fayyad and Bank of Israel chief Stanley Fischer, both former IMF officials, decided Israel would ask for the bridge loan because the Palestinian Authority is not a member state and cannot receive financial support from the IMF. Under interim peace agreements with Israel, the Palestinian Authority exercises limited self-rule in the West Bank, territory Israeli forces occupied in a 1967 war. The IMF's representative office for the West Bank and Gaza Strip did not provide an immediate comment. Fayyad's office was not immediately available for comment. A spokesman for the Bank of Israel declined to comment. A brief report by the IMF on the economic situation in May described the Palestinian Authority's fiscal crisis as "very challenging" and said foreign aid to the PA was "far less than needed to finance the deficit" of around $1.3 billion in 2012. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. Macron says France commemorates 109th anniv. of Armenian genocide Today France commemorates the 109th anniversary of the Armenian genocide of 1915, Macron says. |