PA borrows from banks to pay suppliers
Published Thursday 30/08/2012 (updated) 02/09/2012 14:54
RAMALLAH (Ma'an) -- The Palestinian Authority has borrowed $75 million from banks to pay debts to suppliers, the minister of finance said Thursday.
Nabil Qassis told Voice of Palestine the loan was not to cover outstanding salaries, which he said would be paid from local revenues.
In July, PA employees earning more than 9,000 shekels (about $990) were only paid part of their salaries. Qassis said Wednesday that the remainder would be paid on Thursday.
Asked about the Ramallah-based government's fiscal crisis, Qassis said Thursday that three areas needed attention.
"To solve the financial crisis we must focus on three areas: first to lower expenditure, secondly to increase supplies and thirdly to revive the economy."
Qassis said paying suppliers by taking bank loans was necessary to revive the economy.
The Palestinian Monetary Authority chief said in June that the PA had reached its maximum limit for bank borrowing, but the economy minister disputed this at the time, saying it had access to unused bank funds.