Palestinian Authority faces cash shortage - Middle East - Al Jazeera English

Palestinian Authority faces cash shortage - Middle East - Al Jazeera English: "The Palestinian Authority (PA) may not be able to pay employees their salaries for the next two months because of a shortfall in foreign aid, Salam Fayyad, the prime minister, has said.

Fayyad told a news conference on Tuesday in Ramallah, West Bank that there was a 'shortage of external financing' though he added that 'our underlying fiscal position today is better than it was two or three years ago'.

'We have been reducing our fiscal deficit,' he said.

Fayyad said the PA may be forced to halve salaries in order to pay.

'What we intend to do is to pay half (salaries) ... in the hope that we can complete the payment of this obligation when enough resources are made available,' he said."