Teetering West Bank economy fuels instability, fear of PA security collapse
An economic downturn in the West Bank as a result of increased security measures and Israel withholding funds to the Palestinian Authority is fueling instability.
As US Secretary of State Antony Blinken prepares for yet another visit to Israel and the West Bank this week, the economic situation in the occupied West Bank is fast deteriorating.
At the time of this writing, Palestinian public servant salaries have not been paid for two months. In an attempt to limit the crisis, the Palestinian Ministry of Education decided to close public schools in favor of virtual learning as some teachers have said they do not have the small amount of money needed to commute to work.
To address the problem, the Palestinian government has struck a deal with local banks to offer public servants a cash advance of up to 1800 shekels ($480) in the form of a loan guaranteed by the Palestinian Monetary Authority at 3% interest. It is not clear whether the interest will be paid by the public servants or the government.
Spillover effects of war
