The Palestinian Authority (PA) is discussing the possibility of declaring itself bankrupt due to its difficult financial situation, Israeli public broadcaster Kan reported on Wednesday. The closure of a large number of government offices and instability in the West Bank are behind this decision.
Discussions are currently taking place at the Palestinian Ministry of Finance, with its Prime Minister Mohamed Shtayyeh being kept in the loop. It is not yet clear whether the latest talks have been brought to President Mahmoud Abbas.
Due to the economic situation in the PA, many employees of the security apparatus resigned to seek private employment. In recent months, these employees, like many others in the Palestinian government, have received only 80-precent of their salaries, resulting in their own debt and even finding themselves bankrupt.
Two main reasons for the economic situation were put forward. First, international aid has continuously decreased every year. Second, a monthly deduction of about $11 million from Palestinian taxes by Israel, due to a pay-for-slay policy enacted by the PA which gives terrorists and their families a generous salary for killing Israelis.