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Spain supports Palestinian Authority through EU's PEGASE scheme for the repayment of PA arrears to Palestinian private sector

PR/21/2009

Jerusalem - The Government of Spain has contributed a further €3 million (over NIS 16.5 million) through the EU's mechanism for assistance to the Palestinians, PEGASE, to help the Palestinian Authority (PA) settle bills due to the private sector for the purchase of medicines. Through this assistance, Spain is providing critical support to the private sector and to the PA, in a bid to help revive the economy, maintain health services and ease the ongoing difficult fiscal situation faced by the PA.

This is the sixth transfer of this kind under PEGASE. Funds for the previous five payments were provided by the European Commission.

A number of businesses will benefit, mostly small and medium-sized enterprises in both Gaza and the West Bank that provide pharmaceutical and medical supplies to the PA.

This is the second time that the Spanish Government has contributed to the Palestinian Authority, emphasising the commitment of the Spanish people in reinforcing the PA's institutions. In March 2008, Spain contributed €20 million through PEGASE towards the payment of salaries and pensions of PA civil servants and pensioners.

Both contributions reaffirm the commitments expressed by Spain at the Paris Donor Conference in December 2007, where the Spanish Government pledged €240 million to support the Palestinian Authority from 2008 to 2010, in order to reduce the financial burden identified in the Palestinian Reform and Development Plan (PRDP).

The arrears repayment scheme is one of a number of initiatives by the European Union to support the PA through the PEGASE mechanism, along with contributions to the payment of salaries and pensions, quarterly payments of social allowances to families in need and the continued provision of industrial fuel for the production of electricity in the Gaza Strip.

The Government of Spain will continue to support the PA in order to promote economic and social recovery. In 2009, Spain, following its pledge at the Sharm Al Sheikh conference, will allocate a further €25 million through the PEGASE mechanism to help fund the recurrent expenditures of the PA.

For further information in Arabic and English on the EU's assistance to the occupied Palestinian territory (including through PEGASE) please visit: www.delwbg.ec.europa.eu

Contacts:

Lorea Uribarri-Berrojalbiz, Head of Spanish Cooperation
Spanish consulate
Tel : 02 628 3065
luribarri@netvision.net.il

Alix de Mauny
Press and Information Manager
European Commission Technical Assistance Office for the West Bank and Gaza Strip
PO Box 22207 Mount of Olives
Jerusalem
Tel: +972 (0)2 541 5888 ext 859
Fax:+972 (0)2 541 5848
NEW WORK MOBILE: +972 (0)54 8024915
Website : www.delwbg.ec.europa.eu