Palestinian banks agree to cover some wages

Palestinian banks agree to cover some wages

By Mohammed Assadi
Reuters
Sunday, June 4, 2006; 3:09 PM

RAMALLAH, West Bank (Reuters) - After threats from militants, Palestinian banks agreed on Sunday to pay out of their own funds 40,000 government workers who have gone without wages for three months.

The banks said they would provide interest-free loans to the Palestinian government's lowest-paid employees, covering one month's salary for 40,000 people at a cost of some $13 million.

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"We are ready to lose millions of dollars but not to risk our relationship with U.S. banks and risk international sanctions," one banking official said of the arrangement.

The announcement came hours after four militant factions, in a rare joint statement, threatened the banks, saying it was their national duty to help the Palestinian people and accusing them of being a "tool" of Israel if they didn't help.


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http://www.washingtonpost.com/wp-dyn/content/article/2006/06/04/AR2006060400193.html