RAMALLAH, July 25, 2009 (WAFA)- The USA and the Palestinian National Authority signed, Friday night at the Headquarter of the Prime Ministry, an agreement of direct budget assistance to the PNA of $200 million.

The US Secretary of State Hillary Clinton, said via Video conference from Washington that, the $200 million is a part of the $900 million pledge for 2009 that the she had announced at the March 2 donors' conference in Sharm Al-Sheikh to address the immediate needs of Palestinians in the West Bank and Gaza and support our longer-term approach of fostering the conditions in which a Palestinian state can be realized.

 “I wanted personally to announce the delivery of budget support to the Palestinian Authority, under the leadership of President Abbas and Prime Minister Fayyad, because what is at stake for the Palestinian people, for the future of a Palestinian state, for the future security of Israel, and for the region is so critical,” Clinton said. “This is important also to the United States and the Obama Administration. Finding a peaceful solution to the Israeli-Palestinian conflict and the broader conflict that has plagued the Middle East for decades has been a priority for the President and me from the very beginning of the Administration.”

Thanking the Secretary of State, PM Fayyad said “the $200 million assistance package of yours represents the largest amount of external financial assistance to be made available to the Palestinian Authority in a single tranche by any donor toward any purpose since the inception of the PA.”

 “The entire amount assistance is earmarked for budget support – the very type of external assistance we need the most, particularly at this juncture, given the severe financial difficulties that we have been facing for many months now,” he added. “So your assistance couldn’t have been timelier, and it will enhance our capacity to deliver vital and needed services to our people in Gaza and in the West Bank. For all of this, we are grateful to you, Madame Secretary.”

Prime Minister Fayyad and his government have undertaken comprehensive reform of the PA’s public financial management structure and taken steps to control government spending and increase transparency. These reforms have been documented by repeated reviews conducted by the World Bank, International Monetary Fund, and the U.S. Government. 

The US Consul General, Jake Walles noted, “The PA’s proven track record in managing donor funds in a transparent and accountable manner gives us great confidence in providing direct budget support.”