WB warns of deepening fiscal crisis in Palestine

PanARMENIAN.Net - The World Bank is warning of a deepening fiscal crisis in the Palestinian territories and urging donors to act urgently to prop up the Western-backed Palestinian Authority, according to The Associated Press.

The bank says the finances of the Palestinian Authority, which governs the West Bank, have been hurt by reduced donor funding; higher-than-expected spending on pensions and loans; and a revenue shortfall sparked by an economic slowdown, primarily in the Hamas-run Gaza Strip.

The bank says in a report Wednesday, Sept 19, that sustainable Palestinian economic growth requires strong private sector investment. But it warns that such development is hampered because Israel bars Palestinians from 60 percent of the West Bank.

Much of the West Bank's farmland and land reserves are located in that territory, which remains under full Israeli control.