Palestinian Economic Bulletin

Main reports: Total banking sector credit reached $2.94bn at the end of February 2011. This is equivalent to 43% of deposits. $2.09bn of credit is for the private sector.

Sadara Ventures was launched on 5 April with $28.7m of capital. MEVC is targeted at the ICT sector and is financed by a range of companies, individuals and institutions that include Cisco, the European Investment Bank, the Google Foundation and the Soros Economic Development Fund.

The 2011 Budget is now in effect and a projected increase in revenues means that 66% of the Palestinian Authority's recurrent spending can be financed from domestic sources. Total budget support required for 2011 is $1bn and the recurrent budget deficit is projected to fall to 13% of GDP, down from 16% in 2009.