The Hamas-led government,has requested $100 million from the Palestinian central bank, in order to pay salaries. The request was confirmed the bank's governor George al-Abed, who said, "The finance ministry asked the Palestinian Monetary Authority (the central bank) for a loan of $100mn and this request is under examination".
However, the Gulf Times reports that he hinted that the request would be turned down, pointing out that underlining that Palestinian fiscal law prohibits borrowing from the Authority to finance budget deficits.
Abed told a news conference yesterday that the monetary authority would take stock of international laws that prohibit the financing of terrorist organisations, which is how Hamas is blacklisted by the EU and US.
More than 160,000 civil servants have not been paid for either March or April.