Palestinian Authority, the lead in the West Bank, said Monday it could not pay salaries for the first time since 2007 because of Israel's decision to stop transferring funds it collects on its behalf, said on Monday. Prime Minister Salam Fayyad said the Israeli decision has executive authority in a financial position "very difficult".
Fayyad said that since mid 2007, the Palestinian Authority paid "promptly" on the salaries of 150,000 employees who have, in the 5th of each month. "We are now on the 9th of May and I could not fulfill our obligations," said Palestinian Prime Minister.
According to Fayyad, Israel's decision was prompted by concerns of the authorities in Jerusalem about the agreement signed last week between Fatah and Hamas. The government in Ramallah has been in a financial position as "very difficult," Palestinian official said.
Government of Israel decided on May 1, to stop the transfer of funds, which represent about 70% of revenues Palestinian Authority, saying the money would reach the Hamas militant group considered a terrorist by the authorities in Jerusalem.
On Wednesday, Mahmoud Abbas and Khaled Meshaal, leader of Fatah, Hamas respectively, have signed an agreement in Cairo, which put an end to the rupture of four years. Palestinian Authority President and Fatah leader Mahmoud Abbas said the Palestinians have decided to "turn the page forever splitting the dark."
On 1 May, the Israeli Ministry of Finance said it will delay the transfer of taxes collected by the Palestinian Authority until it is proved that money does not reach Hamas. Also, Obama said the U.S. administration will reconsider its policy of aid to the Palestinian Authority.
Hamas is considered a terrorist by the U.S. and Israel. Islamist groups would terminate the state of Israel and to support bin Laden.