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      Free Daily Israel Report
      Archive: 8/21/2011
      21:28
      Reported

      News Brief

        8/21/2011, Av 21, 5771

      PA: Clinton Did Not Threaten Funding Cut


      The office of Palestinian Authority Prime Minister Salam Fayyad denied, on Sunday, reports circulating in Israel that the United States threatened to cut off funding to the PA if it applies to the United Nations for recognition as a sovereign state in September, according to the PA's WAFA news agency.

      A Fayyad spokesman said a conversation between the prime minister and US Secretary of State Hillary Clinton revolved around the need for donor nations to make good on their commitments to the PA so that it can overcome its current financial crisis. The PA is suffering from a shortage of cash and its deficit is estimated at half a billion dollars. It has only been able to pay its employees half their salaries in the last month or two.