EU provides €5.44 million through PEGASE to help settle PA arrears to the private sector
The European Union has provided €5.44 million (just over NIS 30 million) to settle unpaid bills of small and medium sized companies that provide services to the Palestinian Authority. The cash injection, which is channelled through the new European mechanism PEGASE, provides crucial relief to the Palestinian private sector at a time when economic conditions are still very difficult for many companies.
This transfer is the second of its kind under the new European mechanism for assistance to the Palestinians, PEGASE, bringing the total amount to €11.67 million this year. Over 130 companies will benefit from the payment, mostly small and medium sized enterprises both in the West Bank and in Gaza .
The reimbursement of these arrears directly supports the Palestinian Authority, which accumulated a number of unpaid bills towards private sector businesses as a result of the recent financial crisis. The PA has identified private sector development as a key pillar of the Palestinian Development and Reform Plan, which outlines the PA's budgetary priorities for the years 2008 to 2010. Assistance such as this helps to provide crucial support to the private sector in an immediate and concrete way, at a time when the obstacles to doing normal business remain extremely high.
Launched by the European Commission on 1 February 2008, PEGASE channels EU and international assistance to help build a Palestinian State. PEGASE is the main financing mechanism of the European Union , which is the largest donor to the Palestinians. It is open to contributions from donors wishing to channel funds to the Palestinian people in the occupied Palestinian territory.
Through a wide-ranging scope of activities PEGASE delivers support to the different components of the Reform and Development Plan of the Palestinian Authority: governance, social development, economic and private sector development and public infrastructure.
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