WASHINGTON, July 13 (Xinhua) -- The United States pledged on Friday continued financial aid in helping the Palestinian Authority cope with a worsening budget deficit.
"On the specific issue of financial assistance, we continue to support our direct budget assistance program with the Palestinian Authority, and we are also encouraging other partners to contribute," the State Department said.
The Palestinian Authority's budget deficit for the current year exceeds one billion U. S. dollars due to lack of foreign aid. The financial crisis has deepened after the Palestinian leadership suspended direct peace talk with Israel in October 2010 due to continuing Israeli settlement construction.
President Mahmoud Abbas was scheduled to visit Saudi Arabia on Friday to request urgent help.
"As we have said, the United States believes that it is important to assist in building up Palestinian institutions to create the conditions for a sustainable peace, and that goal is furthered by ensuring the financial stability of the Palestinian Authority," the State Department said.