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Saudis, Arab states drastically reduce aid to Palestinians

Arab grants and financial aid to the Palestinian Authority (PA) have decreased since the beginning of this year by more than 81% compared to last year, exacerbating the financial crisis facing the PA.
This picture taken on February 2, 2020 shows a view of a produce market in the occupied West Bank Palestinian city of Nablus, following the announcement of Israeli Defence Minister Naftali Bennett to halt imports of all agricultural goods from the West Bank into Israel. (Photo by Jaafar ASHTIYEH / AFP) (Photo by JAAFAR ASHTIYEH/AFP via Getty Images)

RAMALLAH, West Bank — The Palestinian Authority (PA) is witnessing one of its worst financial crises as it finds itself unable to fulfill its obligations toward the Palestinians with no light at the end of the tunnel.

Many reasons are behind the current crisis. Chief among these are the local economic repercussions of the coronavirus pandemic that led to a decline in the domestic revenues collected by the PA. Prior to that, US aid to the PA was halted due to the PA’s rejection of the US president’s peace plan in the Middle East, known as the “deal of the century.” Also, the PA stopped accepting clearance funds collected by Israel since its decision in June to end all agreements signed with Israel. And most recently, there has been a decline in Arab financial grants and aid allocated to the Palestinian state budget.

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