India Intelligence Report

Palestinian Cash Crunch


Hamas is coming to terms with its election victory and administrative responsibilities. A severe cash crunch created by Israel's block of tax money transfers and a halt in western nations' aid has left the Palestinian Authority (PA) without cash to pay salaries to its 137,000 workers. While the western nations lined up behind Israel and promised to cut aid of USD 1 billion, Hamas insisted that it would continue to work for the destruction of Israel. In the meanwhile, West Asian Islamic countries are trying to help PA tide over the crisis with special doles.

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