World Bank Approves Aid for Palestinians

World Bank Approves Aid for Palestinians

Published: 3/7/06, 6:46 PM EDT
JERUSALEM (AP) - The World Bank on Tuesday announced a $42 million grant to the Palestinian Authority, which was plunged into a financial crisis by a drop in revenues after the Islamic militant group Hamas won Palestinian parliament elections in January.

A World Bank statement said the money was to help the authority meet immediate financing needs and to "avoid suspension of vital basic services to the Palestinian population."

With Hamas - listed as a terrorist organization by the United States, Israel and the European Union - poised to form the next Palestinian government, Israel has frozen the transfer of about $50 million a month in customs and tax receipts collected on behalf of the Palestinian administration.

The U.S. has demanded the return of about $46 million in unspent direct donations to the outgoing government.

Israel has said it will not give money to the Palestinian government for fear it would be used for terror attacks, but Israeli leaders have said they want to prevent a humanitarian crisis among the Palestinians.

The EU gave the Palestinians $143 million in emergency aid last month, noting it would reconsider its contributions when a Hamas Cabinet takes office.
credit BellSouth