World Bank approves $55 mln for Palestine

The World Bank agreed to approve $55 million to the Palestinian territory for development projects over two years, a press statement said. The Bank's 2012 - 2014 strategy will continue to support "strengthening the institutions of a future Palestinian state," and try to stimulate economic growth by supporting the private sector, the statement said, according to the Palestinian news agency (Ma'an). Palestinian growth has slowed as donor contributions have decreased, and the Palestinian government struggles to fill a $1.1 billion projected budgetary shortfall, the World Bank said in a March report. The economy remains stymied by Israel's movement and closure restrictions, as well as barriers to trade, it added. "The Palestinian fiscal situation appears to be worsening despite efforts to reduce expenditures and increase revenues," World Bank Country Director for West Bank and Gaza Mariam Sherman said Friday. "This is linked to the system of restrictions on access to land, water and export markets which imposes economic costs and constrains private sector growth," she said. The World Bank pledged to continue its support, but said "this must be coupled with measures to develop longer-term opportunities to unleash the vibrant Palestinian entrepreneurial spirit," Sherman added.