UPDATED ON:
Monday, February 16, 2009
18:38 Mecca time, 15:38 GMT
News Middle East
Palestinians borrow to pay salaries
 The Palestinian Authority says workers will
be paid on Tuesday [AFP ]

The Palestinian Authority has taken bank loans to pay overdue salaries to civil servants and end a 24-hour strike in the West Bank, a top official has said.

Mahmoud al-Habbash, the Palestinian social affairs minister, said that salaries would be paid on Tuesday.

"Salaries will be paid tomorrow. We received financial assistance from local banks and we hope that financial aid from donors will be transferred soon to pay back the loans," he said on Monday.

Thousands of government workers in the West Bank went on strike on Sunday after the Palestinian Authority failed to pay their salaries for two weeks.

Salam Fayyad, the Palestinian prime minister, said that the government had been unable to pay the workers on time because the money had been spent on assisting the people of Gaza.

Fayyad said $20mn had already been sent to UN agencies to help civilians left homeless after Israel's 22-day assault on the Palestinian territory.

Israel's offensive in Gaza killed at least 1300 Palestinians and destroyed thousands of homes.

Reconstruction is estimated to cost at least $2 billion.

The Palestinian Authority is seeking to lead reconstruction efforts in Gaza, which has suffered an Israeli blockade in addition to sanctions imposed by Western governments since Hamas took control of the territory in 2007.

 Source: Agenices
 
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