Dubai: The World Bank said its directors have agreed to advise the Board of Governors to authorise a replenishment of $55 million (Dh201.9 million) to the Trust Fund for Gaza and the West Bank as part of its strategy to support the struggling nation.
"Consistent with recent commitments, the bank's support will continue to focus on strengthening the institutions of a future Palestinian state to efficiently manage public finances while ensuring services to citizens," the World Bank said in a statement.
To help accelerate much-needed growth, the World Bank group institutions, including the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will work closely to help create an enabling environment for private sector-led growth.
Financial independence, local government empowerment, poverty reduction and economically sustainable infrastructure development are all themes to underpin this strategy and are in line with the Palestinian National Development Plan for 2011-2013.
‘Constrains growth'
"The Palestinian fiscal situation appears to be worsening despite efforts to reduce expenditures and increase revenues. This is linked to the system of restrictions on access to land, water and export markets which imposes economic costs and constrains private sector growth," said Mariam Sherman, World Bank Country Director for the West Bank and Gaza. "We are supporting the authorities as they build institutions and deliver services to citizens but this must be coupled with measures to develop longer-term opportunities."
