EU approves €50m funding for Palestinians
The EU has approved the continuation of budgetary assistance to the Palestinian Authority.
In a statement earlier today, the European Commission said it had approved, for an amount of €50 million, a deal the main objective of which will be to assist the PA to deal with problems encountered by the interruption of monthly transfers of tax receipts (VAT and customs duties) by Israel.
Israel announced that tax receipts would be disrupted following the outbreak of the Intifada in the Palestinian Territories in October 2000.
In particular, the statement said, these operations are designed to help the PA to secure its basic expenditures with respect to public service salaries, social, educational, health and core functions.
The support is paid monthly in equal installments of €10 million over the period March to July 2002.
Disbursements are made upon compliance of conditions relating to the transparency in PA's public finances. The transfer of monies will be monitored by the IMF.