"After earning international praise over the last two years for its financial
reforms, the Palestinian Authority is facing its worst cash crunch in years,
just as it hopes to prove to the United
Nations that it deserves recognition as an independent
state. Palestinian banks, which lent the authority about $200 million to
cover shortfalls, have stopped making new loans. Donations from the Arab world
have plummeted in recent months. To conserve cash, the authority, which
is facing a $35-million monthly shortfall, said it will have to slash
yet-unspecified expenditures and services."