INTERVIEW-Palestinians need emergency aid from Arab summit
By Wafa Amr
RIYADH, March 28 (Reuters) - Palestinian Finance Minister Salam Fayyad urged Arab leaders gathering in Riyadh for a two-day summit on Wednesday to guarantee financial aid to Palestinians suffering an international aid embargo.
"Arab leaders have before them a resolution to provide budgetary support for the Palestinian Authority, this time for a whole year beginning April 1, 2007," Fayyad told Reuters in an interview before the summit began on Wednesday.
The government, led by Islamist group Hamas, hopes the summit will help persuade the international community to end a financial blockade led by Israel and its U.S. ally.
Fayyad said he hoped Arab states could commit to pay $660 million annually to meet the basic needs of 4 million Palestinians living in the West Bank and Gaza Strip.
Arab foreign ministers on Monday approved a draft resolution to continue offering aid of $55 million a month to support the Palestinian budget, an arrangement first set up in 2002.
"Our financing needs are very, very high. That's due to the fact that we have a carry-over of payment arrears from last year in the amount of $900 million. There are bills overdue and this includes $643 million in wage arrears alone," Fayyad said.
"In addition, our estimated financing need for the year 2007 is $1.8 billion, and plus the $900 million from bills overdue that makes a total of $2.7 billion," he said.
INTERNAL TAXES
Fayyad said the Palestinian Authority can cover some of the $2.7 billion from internal taxes and fees it collects directly from the Palestinians, which amount to $20 million a month, or $240 million annually.
Israel withheld more than 60 percent of tax and fees revenues it collected on behalf of the Palestinians as part of the blockade imposed after Hamas took power in early 2007.
The withheld money totals $650-$700 million.
Fayyad, respected by the international community for reforming the Palestinian financial system under late leader Yasser Arafat and fighting corruption, was appointed finance minister in a national unity government set up this month.
"We still need $2.65 billion. We hope that the Arab donor countries that have not disbursed fully their pledges in the context of previous Arab summits would do so. This number amounts to $1.46 billion," Fayyad said.
He said the message the Palestinians were conveying to the Arabs was that emergency aid is needed now.
"We hope at this critical juncture and this time of acute need that Arab donor countries that have not fully disbursed on previous pledges to do so" he said, adding Palestinian per capita income is today at 60 percent of its 1999 level.
The money would be used for a 2008-2010 financial plan with reduced dependence on aid, he said.
"Our vision for the future of Palestine is not to rely on aid forever," he said.
RIYADH, March 28 (Reuters) - Palestinian Finance Minister Salam Fayyad urged Arab leaders gathering in Riyadh for a two-day summit on Wednesday to guarantee financial aid to Palestinians suffering an international aid embargo.
"Arab leaders have before them a resolution to provide budgetary support for the Palestinian Authority, this time for a whole year beginning April 1, 2007," Fayyad told Reuters in an interview before the summit began on Wednesday.
The government, led by Islamist group Hamas, hopes the summit will help persuade the international community to end a financial blockade led by Israel and its U.S. ally.
Fayyad said he hoped Arab states could commit to pay $660 million annually to meet the basic needs of 4 million Palestinians living in the West Bank and Gaza Strip.
Arab foreign ministers on Monday approved a draft resolution to continue offering aid of $55 million a month to support the Palestinian budget, an arrangement first set up in 2002.
"Our financing needs are very, very high. That's due to the fact that we have a carry-over of payment arrears from last year in the amount of $900 million. There are bills overdue and this includes $643 million in wage arrears alone," Fayyad said.
"In addition, our estimated financing need for the year 2007 is $1.8 billion, and plus the $900 million from bills overdue that makes a total of $2.7 billion," he said.
INTERNAL TAXES
Fayyad said the Palestinian Authority can cover some of the $2.7 billion from internal taxes and fees it collects directly from the Palestinians, which amount to $20 million a month, or $240 million annually.
Israel withheld more than 60 percent of tax and fees revenues it collected on behalf of the Palestinians as part of the blockade imposed after Hamas took power in early 2007.
The withheld money totals $650-$700 million.
Fayyad, respected by the international community for reforming the Palestinian financial system under late leader Yasser Arafat and fighting corruption, was appointed finance minister in a national unity government set up this month.
"We still need $2.65 billion. We hope that the Arab donor countries that have not disbursed fully their pledges in the context of previous Arab summits would do so. This number amounts to $1.46 billion," Fayyad said.
He said the message the Palestinians were conveying to the Arabs was that emergency aid is needed now.
"We hope at this critical juncture and this time of acute need that Arab donor countries that have not fully disbursed on previous pledges to do so" he said, adding Palestinian per capita income is today at 60 percent of its 1999 level.
The money would be used for a 2008-2010 financial plan with reduced dependence on aid, he said.
"Our vision for the future of Palestine is not to rely on aid forever," he said.
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