- The Palestinian people are currently experiencing a very difficult situation, and the international community must provide support. This is why I informed Palestinian Finance Minister Salam Fayyad at a meeting today that Norway will contribute USD 10 million in budgetary support to the Palestinian Authority this year as well, said Foreign Minister Jan Petersen.

Foreign Minister Petersen said that the Norwegian contribution is being given as a follow-up to the meeting of the Ad-Hoc Liaison Committee in London in February. On the basis of a World Bank study, the meeting concluded that budgetary support is the most effective means of combating poverty in the Palestinian Territory, where almost 60 per cent of the population are currently living below the poverty level.

- In Norway’s view, it is also important to prevent the Palestinian Authority institutions from collapsing as they will form the foundation for an independent Palestinian state,” said the Foreign Minister. “If the Palestinian Authority collapses, there is no other party on the Palestinian side that can negotiate with Israel on peace.”

The Foreign Minister added that Finance Minister Fayyad has been in charge of the Palestinian Authority’s reform efforts, and has made a number of important improvements in financial management. The IMF is also continuing to monitor the use of budgetary support provided by donors.