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UN Refugee Agency for Palestinians Pays Salaries, but Crisis Persists

A Palestinian worker stands at the entrance gate of an aid distribution center run by the UNRWA, at Beach refugee camp in Gaza City November 9, 2020. (Reuters)
A Palestinian worker stands at the entrance gate of an aid distribution center run by the UNRWA, at Beach refugee camp in Gaza City November 9, 2020. (Reuters)
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UN Refugee Agency for Palestinians Pays Salaries, but Crisis Persists

A Palestinian worker stands at the entrance gate of an aid distribution center run by the UNRWA, at Beach refugee camp in Gaza City November 9, 2020. (Reuters)
A Palestinian worker stands at the entrance gate of an aid distribution center run by the UNRWA, at Beach refugee camp in Gaza City November 9, 2020. (Reuters)

The United Nations agency for Palestinian refugees paid the salaries of 30,000 Palestinian staff across the Middle East for last month, but a funding shortfall may still hinder payment in December, officials said on Wednesday.

UNRWA finds itself in limbo after the US election - President Donald Trump ended all US payments, but while Palestinians hope President-elect Joe Biden’s administration will at least partially resume payments, that could take months.

The agency said last month it had run out of money to pay salaries after two years of funding cuts by the United States and other donors.

Adnan Abu Hasna, an UNRWA spokesman in Gaza, said the November salary payments were made possible only by a $20 million loan from the United Nations, $12 million in new pledges and an advance from Sweden on its 2021 contribution.

“The payment of December remains uncertain and we are in need of $38 million to pay the salaries of our 30,000 staff,” Abu Hasna told Reuters.

UNRWA provides education, health and relief services to around 5.7 million registered Palestinian refugees, including those in Gaza and the occupied West Bank and East Jerusalem.

Also on Wednesday, Israel handed over a backlog of billions of shekels in tax money to the Palestinian Authority. The taxes, managed by Israel under interim peace accords from the 1990s and usually handed over monthly, make up more than half of the PA’s budget.

The 3.77 billion shekels ($1.14 billion) transfer is the first since June, when the Palestinians snubbed the handover due to Israeli Prime Minister Benjamin Netanyahu’s plans, currently suspended, to annex parts of the West Bank.

The PA has been unable to pay full wages of its 130,000 employees in the past months. Palestinian Prime Minister Mohammad Shtayyeh said this week it would pay full salaries once it received the tax money.

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Arab World

France Says Unaware of Algerian Trade Curbs as Tensions Build

French President Emmanuel Macron and Algerian President Abdelmadjid Tebboune. (AFP file)
French President Emmanuel Macron and Algerian President Abdelmadjid Tebboune. (AFP file)
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France Says Unaware of Algerian Trade Curbs as Tensions Build

French President Emmanuel Macron and Algerian President Abdelmadjid Tebboune. (AFP file)
French President Emmanuel Macron and Algerian President Abdelmadjid Tebboune. (AFP file)

France said on Thursday that it was not aware of any official measures imposed by Algeria on its imports and exports, but would keep a close eye on the situation as diplomatic sources suggested Algiers may be preparing trade restrictions.
Ties between Paris and Algiers have worsened in recent weeks since France recognized Morocco's sovereignty over the disputed territory of Western Sahara, which Morocco wants the international community to recognize as Moroccan, Reuters said.
The decision angered Algiers, which backs the Polisario Front that is seeking an independent state.
"We have not been made aware of such measures, but we are closely watching the situation for our companies in Algeria," France's foreign ministry spokesman Christophe Lemoine told reporters at a weekly news conference.
The office of Algerian Prime Minister Nadir Larbaoui issued a statement denying the contents of a post on X by France's former ambassador Xavier Driencourt which shows a screenshot of a document that appears to outline restrictions on imports and exports. Reuters was not able to authenticate the document and Driencourt did not respond to a request for comment.
"Following the false allegations promoted by the former French ambassador to Algeria ... regarding the alleged restrictive measures on foreign trade, the press office of the Prime Minister would like to categorically deny this information which is completely unfounded," it said in a statement.
According to three diplomats, there has been a concerted effort in recent months by Algeria to toughen the business environment for French firms, including wheat exporters.
The diplomats said there had been some signals in recent days that Algiers may look to specifically target French imports and exports, although there had been no official confirmation at this stage.
Algerian officials did not respond to Reuters' requests for comments.
BANKING SPAT
In 2022, Algeria's banking association ordered the end of payments to and from Spain after an official trade ministry directive, although it exempted key gas exports.
That rift, which has since calmed, was also over Madrid's stance on Western Sahara.
French daily newspaper Le Figaro newspaper reported on Thursday that the banking association in the North African country had met banks on Nov 4. and informed them of a potential measure.
Two diplomats told Reuters they were aware of that meeting, but cautioned that the association could not take such a decision unilaterally.
Several French companies operating in Algeria contacted by Reuters said they had not received any new directives and French officials said at this stage no companies had approached them with any specific difficulties.
Grain traders have reported that Algeria overlooked France in wheat tenders last month due to the diplomatic tensions, though Algerian state grains agency OAIC said it treated all suppliers fairly and applied technical requirements to cover its import needs.
The reported trade obstacles echo a diplomatic dispute three years ago that led to France being sidelined from its former colony's wheat tenders for months. Trade between the two countries grew more than 5% in 2023 with hydrocarbon exports from Algeria to France increasing about 15%, although imports to Algeria from France dropped 0.5%, according to the French finance ministry.