March 12, 2007
The Palestinian Authority (PA) is currently confronting a fiscal crisis that could threaten its very existence. During the first six months after the new Hamas-led government was sworn in on March 29, 2006, tax revenues (on a cash basis) amounted to only $17 million per month, compared to $104 million during the same period a year earlier.
The proximate causes are the Israeli decision to withhold clearance revenues and the U.S. threat to prosecute any banks engaged in financial transactions with the PA in the wake of the January 2006 election.. Read more>>
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