EUROPE GRANTS $40 MILLION TO SUPPORT PA

West Bank, 23 Rajab 1435/22 May 2014 (MINA) – The World Bank Board of Executive Directors has approved a $40 million grant to support the Palestinian Authority’s strategic reform priorities.

“The development of a sustainable fiscal position and strong public financial management systems are key elements for building the institutions of a future Palestinian state and therefore the Bank has approved today a $40 million US dollars grant to support the Palestinian Authority’s (PA) strategic reform priorities”, The Bank said in a statement on Wednesday as quoted by Middle East Monitor and Mi’raj Islamic News Agency (MINA).

World Bank Country Director for West Bank and Gaza, Steen Lau Jorgensen said “The World Bank remains committed to support the Palestinian Authority’s efforts to improve public finances and to strengthen the business environment”.

“Implementing fiscal and economic reforms and maximising the efficient use of resources helps the government in being more responsive to the needs of the people and increases confidence in the institutions, resulting in a vibrant society with social equity” he said.

The Bank’s statement said that The Development Policy Grant (DPG) which aims at improving the PA’s fiscal position, building robust public financial management systems and improving access to finances for Palestinian enterprises will contribute to building the institutions of a future Palestinian state.

World Bank Senior Economist, Orhan Niksic pointed out that “Policy-linked budget that offers effective means of supporting reform programs…The operation builds upon the reform progress supported by previous Development Policy Grants. The fiscal situation remains difficult but the PA has made significant progress in further reducing its budget deficit and improving revenue performance”.

The grant is the sixth in a series totalling $240 million to support the PA budget which is supplemented with $200 million of additional annual donor support to enhance the PA reform agenda.(T/Fauziah/P03/E01)

Mi’raj Islamic News Agency (MINA)