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(AFP/Yahoo) A massive fiscal squeeze on the Hamas-led government has led to warnings that the Palestinian people could become residents of a failed state even before they achieve independence. The government can no longer pay salaries. Although the government has received pledges from other Muslim countries, the cash has yet to materialize and represents a fraction of the sums required. Former finance minister Salam Fayad said the freeze in aid had scared banks off: "All of a sudden the banks have become nervous. If you skip a payment, they are not going to ask for what they are due, they are just not going to give you any more." 2006-04-21 00:00:00Full Article
A Failed Hamas State?
(AFP/Yahoo) A massive fiscal squeeze on the Hamas-led government has led to warnings that the Palestinian people could become residents of a failed state even before they achieve independence. The government can no longer pay salaries. Although the government has received pledges from other Muslim countries, the cash has yet to materialize and represents a fraction of the sums required. Former finance minister Salam Fayad said the freeze in aid had scared banks off: "All of a sudden the banks have become nervous. If you skip a payment, they are not going to ask for what they are due, they are just not going to give you any more." 2006-04-21 00:00:00Full Article
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