Palestinians get $12 million World Bank grant

JERUSALEM (Reuters) -- The World Bank said on Wednesday it would give $12 million to the Palestinian Authority to alleviate hardship in the West Bank and Gaza caused by Israeli restrictions on Palestinians working in Israel.

A statement by the bank said the grant would help counter hardships for thousands of families by providing temporary work for unskilled and semi-skilled laborers on such tasks as painting, pipe installations and repairs to buildings.

"This is a highly unusual move for the World Bank, since the bank usually provides loans rather than grants," said Joseph Saba, World Bank Director for the West Bank and Gaza.

"However, the severe economic shock affecting the Palestinian economy calls for a rapid response that should not impose further financial burdens on the Palestinian Authority."

Israel has placed restrictions on Palestinians coming to work in the Jewish state during a two-month-old Palestinian uprising against Israeli occupation in which 297 people, most of them Palestinians, have been killed.

Israel says it has taken the action as a precaution against extremist Palestinians carrying out suicide bombings in Israeli towns and cities.

The bank said that as a result of the closures, about 125,000 Palestinians working in Israel, nearly 20 percent of the Palestinian labor force, were unable to go their jobs.

"At the same time the domestic economy has been crippled by both internal and external closures and work stoppages due to inadequate supplies of materials, restrictions on movement and other related transaction costs," the statement said.

The bank said it wanted the grant to serve as a catalyst for other donors to fund similar activities.

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