Salama: Signs of easing in crisis, debt at $17.4B
Current financial indicators suggest that the Palestinian government is moving toward a gradual alleviation of the financial crisis, despite the ongoing significant gap between revenues and monthly needs, which amounts to approximately 1.5 billion shekels. Meanwhile, domestic revenues do not exceed 100 million shekels. The government's debt stands at around $17.4 billion, including about $4 billion owed to Palestinian banks, with Israel withholding roughly 6 billion shekels from Palestinian tax revenues ("the Fateh Fund") and deducting 3% for administrative costs, which puts pressure on the Palestinian public finances. Government funding relies on borrowing, international aid, and domestic revenues, with interest payments to banks exceeding 800 million shekels annually. The health sector is also suffering from debts estimated at about 4 billion shekels. The Minister of Finance called for reducing dependence on the Israeli shekel, while encouraging the use of other currencies and expanding electronic payments, such as the "Jiboss" platform, in order to improve liquidity and lessen financial restrictions. Achieving this requires strict financial management and prioritization to ensure the continuity of institutions and essential services despite resource constraints.
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