by Emad Drimly, Saud Abu Ramadan
The deposed government of the Palestinian Islamic Hamas movement, which rules the impoverished enclave of the Gaza Strip, faces a severe fiscal crisis due to the lack of financial liquidity and the tight restrictions of the Israeli blockade, sources close to Hamas said on Sunday.
The sources, which spoke on condition of anonymity, told Xinhua that Hamas government is facing difficulties in bringing money into the blockaded enclave, which resulted in the lack of financial liquidity, adding that "this might lead to a severe financial crisis that Hamas would soon suffer from."
Israel had imposed a tight blockade on Gaza after Hamas and two minor armed groups' militants kidnapped the Israeli soldier Gilad Shalit in a cross-border attack in southeast Gaza Strip in June 2006. Israel tightened the blockade after the movement seized control of the enclave in June 2007.
"Hamas government is about to face so many difficulties, mainly about paying the monthly salaries for its civil and security employees and other running costs," said the sources. Palestinian President Mahmoud Abbas deposed Hamas government after the movement took control of the Gaza Strip.
In addition to the tight blockade that Israel imposes on the enclave, the international community led by the U.S. had imposed an embargo on the movement after it won the legislative elections four years ago. Hamas rejected the world's requirements, mainly recognizing Israel and denouncing violence.
"The financial crisis is not linked to the sources of finance or its fundamental financial abilities, but it is linked to the difficulties of bringing this money to the Gaza Strip and the shortage of liquidity due to more than three years of Israeli blockades and the restrictions imposed on the banks," said the sources.
The deposed Hamas government hasn't yet paid the salaries of January to its 34,200 employees in the Gaza Strip, said the sources, adding that "there are concerns that the government of Hamas wouldn't be able to pay its employees the salaries of the coming months if the crisis goes on."
There has been no official announcement made by Hamas government officials in Gaza that the government suffers from a financial crisis and a shortage of financial liquidity to cover its monthly running costs.
Gaza economy experts believed that the reason behind the crisis "is the tight security measures Egypt is imposing on its borders with the Gaza Strip," adding that Egypt imposes tight restrictions on money entrance into the Gaza Strip either held by individuals or groups.
Hamas had repeatedly expressed concerns over an underground steel barrier that Egypt builds under the borderline between Egypt and the Gaza Strip. The purpose of building the barriers, according to Egyptian officials, is to secure Egypt's borders and prevent smuggling through underground tunnels.
According to the experts, there is another reason behind the fiscal crisis that Hamas in Gaza is suffering from, where local banks in the Gaza Strip have financially boycotted Hamas and refused to deal with the movement or its deposed government.
According to Hamas government's official figures, there are 34, 200 employees who receive about 16 million dollars as monthly salaries, adding that 16,700 are police and security officers, and 17,500 are civil employees working at the various ministries of the government.
The sources said that the deposed government of Hamas had recently met with several experts to study the possibilities of carrying out cuts off and closing down some of the less influential ministries, merge other ministries together and reduce the monthly invoice of the salaries.
An official source in Hamas ministry of finance, who also spoke on condition of anonymity, admitted to Xinhua that there are " serious difficulties the government suffers from, especially bringing financial liquidity from abroad to the Gaza Strip."
However, the source said that "so far, the government is still able to run its affairs, adding that the delay in paying January salaries to the employees is basically related to "technical problems," adding that "the salaries will be paid within the coming few days."
In December last year, the government of Hamas approved its annual budget which is 540 million U.S. dollars. However, and due to the current difficulties it is not clear if Hamas government in Gaza will be able to continue paying the salaries to its employees in the coming few months.
Hamas officials said there are four basic sources of income into the budget of Hamas government: first is the taxes and customs the government collects from the Gaza Strip population, second is the agricultural investment in Gaza, third is the local donations and fourth is the Arab and Islamic donations.
The Palestinian National Authority (PNA) which is a rival to Hamas accuses Iran, Syria and Qatar for supporting Hamas government in the Gaza Strip by sending huge amounts of money to the movement to keep it surviving and controlling the Gaza Strip.
View the original article in People.
Showing posts with label Gilad Shalit. Show all posts
Showing posts with label Gilad Shalit. Show all posts
Monday, February 8, 2010
Sunday, August 30, 2009
The Philadelphia Bulletin: Israeli and Palestinian Leaders Meet
by David Bedein
Prime Minister Binyamin Netanyahu last week welcomed the statement made by Palestinian Authority Chairman Machmud Abbas, also known as Abu Mazen, who called for a resumption of negotiations with Israel. "If Abu Mazen stands behind that offer, then that is a positive thing and we're talking about progress," Netanyahu said in a meeting with Israeli journalists in Berlin following his meeting with German President Horst Koehler during his visit to Germany.
"We have thought for a long time that there is reason to hold a meeting without reconditions and to begin taking steps that will bring about the promotion of the political process," Netanyahu added.
Netanyahu underscored, however, that without Palestinian recognition of Israel's Jewish character, it would be impossible to resolve the conflict.
"The root of the conflict isn't the settlements, the borders or one area or another," he said. "All of those issues will be raised for discussion and we are going to have to find solutions to them. The problem is the refusal to recognize Israel as a Jewish state."
However, judging by Abu Mazen's statements yesterday before the Palestinian parliament, the differences between the two parties are larger than the mere question of whether Israel is recognized as a Jewish state. While Abu Mazen voiced his willingness to renew negotiations, he underscored that the condition for renewal was a suspension of all construction in the settlements. Moreover, Abu Mazen said that the negotiations needed to be resumed from the point at which they broke off during Ehud Olmert's term in office.
"In talks with the Olmert government it was agreed that the borders of the Palestinian state would include the Gaza Strip in its entirety and the West Bank in its entirety, including Jerusalem, the Dead Sea and the River Jordan," claimed Abu Mazen in his speech. "When we return to negotiations we will begin them from those points and not from zero."
An official in Abu Mazen's office added his own statements.
"We want negotiations in order to reach a solution of two states, but we want to discuss a final status arrangement and not waste time as occurred in the past," he said.
Senior sources in Ramallah said that an agreement in principle has been reached for Abu Mazen to meet with Netanyahu in New York.
"Abu Mazen will meet with Netanyahu not in order to negotiate, but in order to establish the rules of the negotiations," said one Palestinian official.
Sources in Prime Minister Netanyahu's entourage said that no agreements have been reached on that matter yet. If Netanyahu and Abu Mazen do meet, in fact, that will be their fist meeting since Netanyahu assumed office as prime minister.
Prior to his departure for Germany, Netanyahu met in London with special US envoy to the Middle East George Mitchell. American officials said after the meeting that Israel had, in practice, agreed to a temporary construction freeze in Judea and Samaria, but that the parties remained divided over the duration of that construction moratorium. The United States has demanded that the freeze last for one year, whereas Israel has agreed to a freeze that will last a number of months. Another issue in contention pertains to Jerusalem. The Americans have demanded that Israel not build inside Arab neighborhoods in Jerusalem. Israel has refused to make any such commitment.
Following the meeting, Netanyahu said that certain progress had been made in that meeting towards a renewal of the negotiations between Israel and the Palestinian Authority.
"The discussions advanced us in the process, though a number of issues remain unresolved," the Prime Minister said upon his arrival in Berlin from London. "The intention is to advance while striking a balance between maintaining the settlers' basic needs of life and maintaining the basic conditions for launching the political process."
Netanyahu vehemently denied reports in the Arab and British media yesterday as if Israel were prepared to accept a six-month-long settlement construction freeze in exchange for an American commitment to intensify the sanctions against Iran.
Netanyahu met with German Chancellor Angela Merkel on Thursday. At the center of their meeting will be the Iranian nuclear program and the German mediation efforts to bring about Gilad Shalit's release from captivity. Prior to Netanyahu's arrival in Berlin, Merkel said that she supported stiffening the sanctions against Iran, mainly in the realm of energy, in the event that Iran should refuse to meet the international community's demand that it suspend its uranium enrichment activities.
"The German political position on Iran is a firm and consistent position," said Netanyahu on the eve of his meeting with Merkel. "The volume of Germany's trade with Iran has dropped by approximately one-quarter, and we will welcome another significant cutback."
Despite optimism from Netanyahu and reports about a possible meeting with Abu Mazen, his party, Likud, is expressing displeasure over recent developments and plans to hold a meeting.
"The Americans are trying to create an imaginary partner for negotiations that does not want and is not capable of making peace with Israel," said MK Danny Danon yesterday and added: "The Middle East is not a Hollywood movie." He said, "Netanyahu's capitulation to American pressure on the subject of construction in Jerusalem and in Judea and Samaria will lead to further demands to make concessions, without our receiving anything in return from the Palestinian side."
MK Ophir Akunis, a former Netanyahu adviser, also said that he would oppose any agreement from the meeting on a construction freeze.
"There will be no construction freeze in Judea and Samaria and we won't stop the lives of the Israelis who live in the settlements," he said.
Along with the talk, preparations began yesterday to oppose a settlement construction freeze. MK Tzippi Hotovely convened the top leaders of Judea and Samaria for a meeting described as "initial preparation to counter the messages emerging from the prime minister's trip to Europe."
View this story in the Philadelphia Bulletin
View this story at Israel Behind the News
Prime Minister Binyamin Netanyahu last week welcomed the statement made by Palestinian Authority Chairman Machmud Abbas, also known as Abu Mazen, who called for a resumption of negotiations with Israel. "If Abu Mazen stands behind that offer, then that is a positive thing and we're talking about progress," Netanyahu said in a meeting with Israeli journalists in Berlin following his meeting with German President Horst Koehler during his visit to Germany.
"We have thought for a long time that there is reason to hold a meeting without reconditions and to begin taking steps that will bring about the promotion of the political process," Netanyahu added.
Netanyahu underscored, however, that without Palestinian recognition of Israel's Jewish character, it would be impossible to resolve the conflict.
"The root of the conflict isn't the settlements, the borders or one area or another," he said. "All of those issues will be raised for discussion and we are going to have to find solutions to them. The problem is the refusal to recognize Israel as a Jewish state."
However, judging by Abu Mazen's statements yesterday before the Palestinian parliament, the differences between the two parties are larger than the mere question of whether Israel is recognized as a Jewish state. While Abu Mazen voiced his willingness to renew negotiations, he underscored that the condition for renewal was a suspension of all construction in the settlements. Moreover, Abu Mazen said that the negotiations needed to be resumed from the point at which they broke off during Ehud Olmert's term in office.
"In talks with the Olmert government it was agreed that the borders of the Palestinian state would include the Gaza Strip in its entirety and the West Bank in its entirety, including Jerusalem, the Dead Sea and the River Jordan," claimed Abu Mazen in his speech. "When we return to negotiations we will begin them from those points and not from zero."
An official in Abu Mazen's office added his own statements.
"We want negotiations in order to reach a solution of two states, but we want to discuss a final status arrangement and not waste time as occurred in the past," he said.
Senior sources in Ramallah said that an agreement in principle has been reached for Abu Mazen to meet with Netanyahu in New York.
"Abu Mazen will meet with Netanyahu not in order to negotiate, but in order to establish the rules of the negotiations," said one Palestinian official.
Sources in Prime Minister Netanyahu's entourage said that no agreements have been reached on that matter yet. If Netanyahu and Abu Mazen do meet, in fact, that will be their fist meeting since Netanyahu assumed office as prime minister.
Prior to his departure for Germany, Netanyahu met in London with special US envoy to the Middle East George Mitchell. American officials said after the meeting that Israel had, in practice, agreed to a temporary construction freeze in Judea and Samaria, but that the parties remained divided over the duration of that construction moratorium. The United States has demanded that the freeze last for one year, whereas Israel has agreed to a freeze that will last a number of months. Another issue in contention pertains to Jerusalem. The Americans have demanded that Israel not build inside Arab neighborhoods in Jerusalem. Israel has refused to make any such commitment.
Following the meeting, Netanyahu said that certain progress had been made in that meeting towards a renewal of the negotiations between Israel and the Palestinian Authority.
"The discussions advanced us in the process, though a number of issues remain unresolved," the Prime Minister said upon his arrival in Berlin from London. "The intention is to advance while striking a balance between maintaining the settlers' basic needs of life and maintaining the basic conditions for launching the political process."
Netanyahu vehemently denied reports in the Arab and British media yesterday as if Israel were prepared to accept a six-month-long settlement construction freeze in exchange for an American commitment to intensify the sanctions against Iran.
Netanyahu met with German Chancellor Angela Merkel on Thursday. At the center of their meeting will be the Iranian nuclear program and the German mediation efforts to bring about Gilad Shalit's release from captivity. Prior to Netanyahu's arrival in Berlin, Merkel said that she supported stiffening the sanctions against Iran, mainly in the realm of energy, in the event that Iran should refuse to meet the international community's demand that it suspend its uranium enrichment activities.
"The German political position on Iran is a firm and consistent position," said Netanyahu on the eve of his meeting with Merkel. "The volume of Germany's trade with Iran has dropped by approximately one-quarter, and we will welcome another significant cutback."
Despite optimism from Netanyahu and reports about a possible meeting with Abu Mazen, his party, Likud, is expressing displeasure over recent developments and plans to hold a meeting.
"The Americans are trying to create an imaginary partner for negotiations that does not want and is not capable of making peace with Israel," said MK Danny Danon yesterday and added: "The Middle East is not a Hollywood movie." He said, "Netanyahu's capitulation to American pressure on the subject of construction in Jerusalem and in Judea and Samaria will lead to further demands to make concessions, without our receiving anything in return from the Palestinian side."
MK Ophir Akunis, a former Netanyahu adviser, also said that he would oppose any agreement from the meeting on a construction freeze.
"There will be no construction freeze in Judea and Samaria and we won't stop the lives of the Israelis who live in the settlements," he said.
Along with the talk, preparations began yesterday to oppose a settlement construction freeze. MK Tzippi Hotovely convened the top leaders of Judea and Samaria for a meeting described as "initial preparation to counter the messages emerging from the prime minister's trip to Europe."
View this story in the Philadelphia Bulletin
View this story at Israel Behind the News
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