Malaysia pledges $16 million to Palestinian Authority

Malaysia's Prime Minister Abdullah Ahmad Badawi seen in Johor Bahru, 370km south of Kuala Lumpur in this May 11, 2006 file photo. REUTERS/Bazuki Muhammad

May 21,2006

Yahoo Asia News

SHARM EL-SHEIKH, Egypt (Reuters) - Malaysia pledged $16 million on Sunday in humanitarian aid and budget support to the Palestinian Authority to compensate for the loss of U.S. and European assistance.
But in practice the Malaysian pledge, like previous contributions from Arab states, will not reach the Palestinians until the United States lifts the threat of sanctions against banks which transfer the funds to the West Bank or Gaza.

Malaysian Prime Minister Abdullah Ahmad Badawi made the pledge at a news conference on the sidelines of a World Economic Forum meeting in Egypt.

"We have decided we should be able to support their budget needs for the remaining months of this year -- as for the figure, at the moment it's around $16 million," he said.

The Palestinian Authority lost most of its direct funding after the Islamist group Hamas won parliamentary elections and formed a new cabinet.

Hamas has refused to meet U.S., Israeli and European demands that it recognise Israel, renounce violence and accept old agreements with the Israelis.