The financial crisis in the Palestinian Authority does not mean that the PA is unready to manage a state, PA Prime Minister Salam Fayyad argued Wednesday. He claimed the crisis was a result of “occupation” and division, implying the situation would improve with statehood.

The PA announced earlier in the week that it would pay its employees just half of what they earned for the month of June due to a serious financial shortage and spiraling debt. Fayyad blamed the financial lack on donor countries, saying many had failed to deliver promised aid.

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