The Palestinian Prime Minister, Mohammed Shtayyeh, Thursday, said that his government is going through difficult financial conditions and will continue to borrow from banks to pay part of its employees’ salaries.

This situation is caused by Israel withholding of part of the Palestinian tax money.

This came in a speech broadcast on his personal page on “Facebook”, on the occasion of Eid El-Fitr.

Shtayyeh said:

“We are going through a difficult financial crisis, caused by Israel. They tried to cut the money allocated to the families of martyrs and prisoners. So, we refused to receive the funds cut. We want it in its entirety.”

He added:

“President Mahmoud Abbas went to the Arab summit (Mecca summit) and asked to activate the Arab financial network, hoping that the Arabs will promptly respond to his request. We also communicated with the international community about Israel’s violation of the Paris economic agreement.”

Shtayyeh’s announcement came amid claims that the PA was exaggerating the financial crisis as a means of pressuring Israel and the US administration.https://t.co/QKnz00ivQL

— The Jerusalem Post (@Jerusalem_Post) June 6, 2019

Shtayyeh said that his government borrowed money from banks in the previous months and will continue to do so.

He said:

“The situation is difficult, but we will remain loyal to the families of martyrs and prisoners.”

He pointed out that the policy of financial pressure exerted by the Israeli side on the Palestinian government is part of a war waged to push the Palestinian side to surrender and accept the American peace plan known in media as the “Deal of the Century.”

“We are in a collapsing situation,” Muhammad Shtayyeh, the new Palestinian Authority prime minister, tells @halbfinger. With revenue cuts under Israeli antiterrorism law, the authority faces a financial crisis that could bankrupt it by July or August. https://t.co/KeoXIewKpn

— Peter Baker (@peterbakernyt) June 5, 2019

Shtayyeh continued:

“Our people will not surrender and we will accept only a just solution, which is the establishment of an independent Palestinian state with East Jerusalem as its capital, with the refugees’ right of return.”

He stressed on the importance of the Palestinian street and factions’ support of the position of President Abbas.

PM Mohammad Shtayyeh discussed with a British parliamentary delegation the latest political developments, especially the political and financial war waged by the US and Israel against the Palestinians@UKinJerusalem @DrShtayyeh pic.twitter.com/NPfL44QnLi

— PM of Palestine (@PalestinePMO) May 28, 2019

He concluded:

“We are confident that we will overcome this circumstance as ‘after black clouds comes clear weather’.”

Shtayyeh Blames #Israel for Financial Crisis https://t.co/ZtFXMCstBJ pic.twitter.com/B1WD2sCxkf

— Asharq Al-Awsat English (@aawsat_eng) June 7, 2019

The Palestinian Authority is suffering from a severe financial crisis after Israel passed a law, last year, allowing it to seize parts of the taxes it collects for the Palestinian Authority, under the pretext that these funds go to the prisoners and the martyrs’ families.

In response to the Israeli decision, the Palestinian government refused to receive the reduced funds, which led it to a severe financial crisis and pushed it to intensify borrowing from banks and turn to the Arab countries to provide funds.

(Middle East Monitor, PC, Social Media)