Iran pledges $250m to aid ailing Hamas Palestinian government

IRAN has pledged $250 million (€188 million) in aid to the cash-strapped Hamas-led Palestinian government, the latest sign of increasingly close ties between the Islamic group and Tehran, Prime Minister Ismail Haniyeh said.

The donation follows the end of a four-day visit by the prime minister to the Iranian capital. He then travelled to Sudan.

Also yesterday the European Commission proposed a three-month extension of a special aid deal for the Palestinians that bypasses the government.

Western donors cut off hundreds of millions of dollars in aid to the Palestinian government after Hamas won parliamentary elections last January. The donors have demanded that Hamas renounce violence and recognise Israel’s right to exist.

The Hamas government has been unable to the salaries to its 165,000 employees.

Hamas refuses to accept the condition, instead turning to Iran and other Muslim countries for help.

Iran already this year pledged $120m (€90m) to the Hamas-led government.

Haniyeh said the new donations would come next year.

Buoyed by the help from Iran, the Hamas-led government has managed to stay afloat, but the money is not enough to cover a deficit totalling hundreds of millions of dollars.

Hamas also has struggled to bring money into the Palestinian areas. International banks have refused to transfer money to the Palestinian government, fearing US anti-terrorism laws.