RAMALLAH, July 23 (Xinhua) -- The Palestinian National Authority (PNA) Thursday denied an Israeli report saying it may collapse due to a severe shortage of cash.
Though the PNA suffers from a financial crisis for months, "it does not face any threat of collapse or bankruptcy," a PNA official told Xinhua.
The official, who asked his name to be withheld, said the Israeli report "aimed at showing the PNA in a fragile, unreliable position for Israeli political and security considerations."
According to the report published by a Jerusalem-based thinktank earlier in the day, the PNA passes through a critical financial impasse, but the debate on a possible reconciliation between Hamas and PNA President Mahmoud Abbas' Fatah party dominated the headlines rather than the fiscal problem.
The report also said Palestinian Prime Minister Salam Fayyad's visit to Washington at the beginning of July mainly meant to rescue the PNA from the crisis and that Fayyad had met the president of the World Bank there.
Earlier this month, the World Bank decided to funnel 40 million U.S. dollars into the PNA to aid the payment for its employees.
The Palestinian monetary official said the problems that the PNA is facing resulted from the global financial meltdown.
He added that many Arab and European countries failed to meet their recent pledges to give 4.7 billion dollars to the PNA over the year.
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