Norway signed an agreement with the Palestinian Authority to provide NOK 168.3 million (about 31 million U.S. dollars) in direct budget support, according to reports reaching Stockholm on Tuesday.
The money will be used to pay salaries and cover operating expenses in the public sector, including the civilian police, Norwegian Broadcaster NRK reported.
Norwegian Foreign Minister Jonas Gahr Stoere said in a statement that the support is provided when the Palestinian Authority is in great need of external funding. "Budget support is essential to enable the Palestinian Authority to pay salaries to public sector employees," the minister said.
"If it fails to pay these salaries, it will be unable to provide people with basic services such as health care and education," Stoere added.
The budget support was announced at a meeting of the Ad Hoc Liaison Committee donor group chaired by Norway, held in New York in September.
Palestinian Prime Minister Salam Fayyad underscored the importance of such support in talks with Stoere just last week.
"It is now important that the international community reconfirm its commitment to the Palestinian people as part of the preparations for the Middle East conference in Annapolis later this month," said Stoere.
Norway hoped that the budget support will encourage other donors to provide substantial funds to the Palestinian Authority during the international donor conference in Paris in December, the Norwegian Foreign Ministry said in a statement.
Source:Xinhua
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