Palestinian PM urges Arabs to send promised cash

July 8, 2012 - 6:38 AM

RAMALLAH, West Bank (AP) — Palestinian Prime Minister Salam Fayyad is urging Arab countries to keep their promises and send tens of millions of dollars to his cash-strapped government.

The West Bank-based Palestinian Authority has always relied on foreign aid but is now embroiled in its worst cash crisis in years, unable to pay tens of thousands of government employees.

Fayyad needs $1 billion to close the 2012 spending gap, but previous heavy borrowing means he can no longer turn to banks. Unlike Arab states, Western donors have mostly made good on pledges.

Fayyad on Sunday called on "donors, particularly the Arab brothers," to send the promised money.

Arab donors have linked aid to ending the political rift that created rival governments in the West Bank and Gaza. Attempts to end the rift have failed.