Palestinian Authority May Declare Bankruptcy

The Palestinian Authority is mulling the possibility of declaring financial bankruptcy, Kan Reshet Bet, Israel’s Public Broadcasting service, reported on Wednesday

The decision would entail the complete closure of P.A. government offices, leading to possible instability in Judea and Samaria, as the P.A. is the largest employer in the areas under its control.

A large number of Palestinian security personnel have already resigned and are looking for work in the private sector, the news site reported. In recent months, they’ve been receiving 80% of their salaries, and many have gone into debt, upon which the banks close their accounts.Israeli Prime Minister Benjamin Netanyahu told a Knesset panel recently that the Palestinian Authority would not be allowed to fail.

We need the Palestinian Authority. We cannot allow it to collapse. We also do not want it to collapse. We are ready to help it financially. We have an interest in the P.A. continuing to work. Where it succeeds in operating, it does the job for us. And we have no interest in it falling,” said Netanyahu, according to Kan.Tensions are already high in Judea and Samaria, as the P.A. appears to have effectively lost control of northern Samaria and violence has increased dramatically.

More right-wing members of Netanyahu’s coalition have called for a tougher military response following a string of incidents including a terror attack near the Samaria community of Eli on June 20 that left four Israelis dead, and an Israeli military operation that ran into tough resistance in Jenin, requiring the unusual use of an Apache gunship to ensure soldiers’ safe extraction.

On Monday, two rockets were launched by terrorists in Jenin, though without warheads.

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