June 2009

HEAdlines

Main reports: International donors met on 8 June in Oslo to discuss financial aid to the Palestinians. An estimated $1.4bn is needed from donors for budget support in 2009. Aid is running at less than 55% of the amount needed, with the PA having received only $328m so far this year.

A further $250m to $300m is expected to be provided by donors by July 2009. The monthly Palestinian deficit is between $35m and $40m, mainly due to a decrease in Arab donor funding to the PA.

Carana Corporation has launched a five-year $20m development programme, funded by USAID, aimed at modernising and bringing Palestinian competitive products into new markets.

The Municipal Development and Lending Fund (MDLF) disbursed approximately $20m to Local Government Units (LGUs) in 2008. MDLF plans to distribute around $40m for 2009. The funds were provided by the international donor community.

The total value of Palestinian exports with a certificate of origin increased from approximately $40m in 2007 to $51.4m in 2008, according to the Palestinian Chambers of Commerce, Industry and Agriculture.