EU extends a 30 million euros assistance to Palestinian authority

The European Commission will extend the Palestinian authority a 30 million Euro assistance to help it overcome liquidity problems it is facing after Israel decided to suspend the transfer of tax receipts to the Palestinian authority, following the flare up of violence since September 2000.

The assistance will also help the Palestinian Authority ensure a minimal running of its administration, supply basic public service and improve the transparency of public money management, a spokesman for the European Commission said.

The assistance is to cover the period between December 2001 and February 2002. Last May, the European Commission had donated the Palestinian finance ministry 60 million Euros, destined to promote a viable management of Palestinian economy.