Mounting debts could lead to the Palestinian Authority's collapse. The PA spends $90 million a month while taking in $77m. a month - $22m. in taxes and $55m. from donor countries. The monthly deficit of $13m. is in addition to previous debts. The PA will collapse, said an Israeli security official, if Israel refuses to transfer money owed it that is currently frozen, the donor countries stop the financial assistance, and the banks refuse to grant the PA further credit.
Looks like it's already collapsing, and the financial part is the least of it. |