World Bank officials said that contact with the new Palestinian government has been ‘limited’ until World Bank President Paul Wolfowitz decides how to proceed.
‘As long as Hamas is isolated by major donors then it'll be very difficult for the bank staff to proceed, and if they would like to’ one senior bank official said.
‘There is no formal stop in grant disbursements, but they are not going out, so it is a dilemma,’ the official added.
The bank has managed a multicolor trust fund for the Palestinians since 2004 that has been tied to economic reforms, in addition to grant funding for development projects.
The United Nations have issued orders to their employees in the Palestinian territories by the non holding any contacts or meetings with Hamas ministers in the government.
The bank has warned that the PA faces a ‘dire’ economic situation and without aid will not be able to pay wages to 140,000 state employees