Palestinian Finances Near Collapse as Cuts Deepen

Palestinian finances are on the brink of ruin after the suspension of hundreds of millions of dollars of U.S. aid, the head of the Palestine Monetary Authority (PMA) said on Tuesday, Reuters reported. The mounting financial pressures on the Palestinians’ self-ruling entity have sent its debt soaring to $3 billion (£2.3 billion), and led to a severe contraction in its estimated $13 billion GDP economy for the first time in years, Azzam Shawwa told Reuters. “We are now going through a critical point,” Shawwa said with respect to Palestinian President Mahmoud Abbas’s Western-backed Authority, which exercises limited self-government in the Israeli-occupied West Bank. Read more