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Monday, June 11, 2012

More financial woes for the PA

From Ma'an:
The head of the Palestine Monetary Authority said Sunday that the Palestinian Authority government has reached the maximum limit of borrowing from Palestinian banks.

Jihad Al-Wazir said in a statement that banks in Palestine increased lending to the government by over $300 million in the last two months, and cannot lend more unless repayments from donor countries come through.

The Authority has set supervisory measures to bolster the banking sector in the face of any political or economic shocks, al-Wazir added.

They maintain a financial leverage ratio of 12 percent, higher than many European banks and put aside 15 percent of profits into a special account, Wazir said earlier.

PA Prime Minister Salam Fayyad said in January that his government owes $1.1 billion in bank loans, as well as $400 million in unpaid revenues to private sector contractors.
Remember when Fayyad declared that the PA would be financially independent by the end of 2013? Good times.