Ramallah – Prime Minister’s Office - The Government of Palestine has welcomed the European Union's decision to transfer €122.5 million, which represents the second installment of the €400 million emergency financial aid package. Out of the total of this second installment, €38.5 million will be granted through the PEGAS mechanism to cover employees' salaries, and €84 million will be provided as a credit line to the Palestinian Monetary Authority by the European Investment Bank.

This amount is the second part of the €400 million emergency financial aid package announced by the European Union in July 2024. It is part of a strategy agreed upon between the EU and Palestine to address the financial and economic difficulties facing the Palestinian Authority and the Palestinian economy. The package, consisting of grants and loans, will be disbursed in three installments, with the first installment of €150 million already executed in July.

The government stressed the importance of this support given the deteriorating economic conditions due to the ongoing Israeli aggression against the Palestinian people in Gaza and the West Bank, and the financial blockade imposed by Israel through the ongoing illegal deductions from Palestinian clearance revenues and withholding these funds. This installment will help the government meet some of its obligations towards employees’ salaries, suppliers, and banks.

The government reaffirmed that the relationship between Palestine and the European Union is a partnership grounded in mutual respect, emphasizing the EU's support for Palestinian rights, including the inalienable right to self-determination and their independent State of Palestine.