Budgetary assistance to the Palestinian Authority – Japanese Govt press release

Budgetary assistance for the Palestinian Authority

1. The Government of Japan has decided to extend financial assistance of $10 million (1,100 million yen) for the Palestinian Authority through the World Bank's West Bank and Gaza Public Financial Management Reform Trust Fund, and officially announced this decision on the occasion of the attendance of Ms. Yoriko Kawaguchi, Minister for Foreign Affairs, at a G8 Foreign Ministers' Meeting (May 14 in Washington, D.C.).

2. This decision to extend budget support has been made in the light of the worsening budgetary gap of the Palestinian Authority as a result of its significantly decreasing tax revenues. This has been the consequence of the economic stalemate brought about by the Israeli policy of closure on the Palestinian territories. All these have left the Palestinian Authority on the verge of collapse. In deciding on its budget support, the Government of Japan took into consideration the repeated appeal from the Palestinian Authority and the consensus among the international community on the need for such support.

3. The World Bank Trust Fund will extend the assistance in a manner that will promote the reform efforts by the Palestinian Authority. The World Bank will monitor the operation of the Trust Fund in cooperation with the donor countries, and Japan will also participate in the monitoring activities. Japan intends to continue assisting the reform efforts of the Palestinian Authority, as it has proactively participated in the Middle East peace process since 1993 including assistance for the Palestinians in the total amount of about $680 million.