Palestinians ‘facing financial collapse’

US INTERNATIONAL envoy James Wolfensohn said the Palestinian Authority faces financial collapse within two weeks now that Israel has cut off tax transfers in response to Hamas’s election victory.

Palestinians ‘facing financial collapse’

Even if the Palestinian Authority survived with emergency funding, the financial crisis could bring upheaval unless the quartet of international peace mediators the US, the EU, the UN and Russia developed a long-term funding plan once a Hamas-led government is in place, he said in a letter to a quartet member.

The quartet last month threatened to cut aid to a government led by Hamas, whose charter calls for the destruction of Israel, unless it renounced violence, recognised the Jewish state and abided by interim peace deals.

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