Grant Aid (Non-project Grant Aid) to Palestinian Territories

March 19, 2004

The Government of Japan has decided to extend non-project grant aid of 500 million yen (about 4.1 million US dollars) to the Palestinian Authority. Notes to this effect were exchanged on March 17 (Wed) in Ramallah in the West Bank between Mr. Tadashi Imai, Japanese Ambassador to Israel, and Dr. Salam Fayyad, Minister of Finance of the Palestinian Authority.
The economic situation in the Palestinian Territories has worsened and caused a severe foreign currency shortage since September 2000, when a conflict broke out with Israeli forces and the Israelis put restrictions on commodity transportation and other activities by imposing a blockade on the Palestinian Territories.
This non-project grant aid is intended to support the Palestinian Authority, which, despite its economic difficulties, is strenuously undertaking economic structural adjustment in cooperation with the International Monetary Fund (IMF) and achieving successful outcomes. The grant aid will be used to purchase commodities necessary to further encourage the area's economic structural adjustment efforts.
This grant aid is expected to alleviate the severe financial situation of the Palestinian Authority.
The Palestinian Authority requested support from the Government of Japan when Dr. Nabeel Shaath, Minister of Foreign Affairs, and Dr. Fayyad, Minister of Finance, visited Japan in February 2004.

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