Palestinian leader Mahmoud Abbas has said the Palestinian Authority (PA) is facing a "real financial crisis". He said aid had begun to decrease after last month's Palestinian poll. It was won by Hamas - regarded as a terrorist group by Israel, the US and the EU.The EU - the biggest donor to the PA - has threatened to stop funding unless Hamas recognises Israel, renounces violence and abides by previous peace accords.
Speaking after the Israeli cabinet announced tough steps against the new Hamas-dominated PA, Mr Abbas said the Palestinians' situation was grave. "Unfortunately, the pressures have begun and the support and the aid started to decrease... therefore we are currently in a real financial crisis," he told reporters in Gaza.
He confirmed that the United States had asked the PA to return $50m following Hamas' victory, but he said talks on the subject were continuing, AFP news agency reported.
| I don't think we'll see the $50 million, but it sends a great signal to ask for it back. |