The European Union said today it had approved new loans worth 30
million euros (£28 million) for the Palestinian Authority to pay salaries and running costs of hospitals and schools.
The EU had pledged to provide such help if Israel failed to transfer indirect tax receipts and customs revenue owed to the Palestinian Authority under an arrangement monitored by the International Monetary Fund (IMF).
"The IMF... has confirmed that, although some payments have been made by Israel since November, large amounts are still due, thus creating a serious financial problem for the Palestinian Authority," the European Commission said in a statement.
The Commission, the EU's executive arm, said the money came from a special fund of 90 million euros established last month.
Asked about allegations of corruption in the Palestinian Authority with previous EU aid, Commission spokesman Mr Gunnar Wiegand said adequate monitoring mechanisms had been put in place to prevent misuse of the funds.
Reuters