PA Official: Financial crisis getting worse

The Palestinian Authority’s deputy prime minister for economic affairs said Tuesday that the financial crisis is getting worse, as the new PA cabinet met for the first time.

"There is a major financial crisis and the PA is $4.2 billion in internal and external debt," Muhammad Mustafa said during a news conference following the cabinet meeting, according to the Bethlehem-based Ma’an news agency.

"We will start looking for sources of financial funds and will examine spending and collect taxes to pay our debts on time," he added.

The PA official also warned of a growing job crisis, with over 250,000 Palestinians in West Bank are currently unemployed, young people particularly affected. "The government will work hard to create jobs, especially for the youth sector through the launching of new projects," he said, according to Ma’an.

The PA owes $600 million to banks and $1 billion to international financial institutions, Mustafa said, adding that the new cabinet is working on a three year plan, starting with a 100-day short-term strategy.

The PA has complained of a financial crisis, the worse in its history, with its former Prime Minister Salam Fayyad having warned the entity may fail and cease to exist.