UNRWA facing "grave and imminent" financial crisis, chief says

Nov 19, 2008, 20:25 GMT

Amman- The Commissioner General of the United Nations Relief and Works Agency for Palestinian refugees (UNRWA), Karen AbuZayd, on Wednesday urged donor countries to contribute 'significant additional pledges' to enable the agency to come to grips with 'a grave and imminent financial crisis'.

AbuZayd made the appeal during the concluding session of a two-day meeting in Amman that brought together donors and host governments, NGOs and other UNRWA stakeholders.

She said that the general fund, which finances UNRWA's core services, would suffer a deficit of about 160 million dollars in the first quarter of 2009. 'This will bring UNRWA closer to financial crisis than it has ever been,' she said.

There were updates from UNRWA directors in Jordan, Syria, Lebanon, the West Bank and the Gaza Strip.

AbuZayd issued an appeal to donors in the oil-rich Gulf region to assist with the construction of the Nahr el Bared refugee camp in Lebanon, which was destroyed during military confrontations last year between the Lebanese army and the militant Fateh al-Islam faction.

She said the situation in the Gaza Strip was 'on the edge of catastrophe' due to the siege imposed on the territory by Israeli forces.

'There is no more milk, no more flour, no more other commodities. We have nothing in our warehouses ... so there is a lot to worry,' she added.

During the meeting, the four Arab countries hosting Palestinian refugees - Jordan, Syria, Lebanon and the Palestinian Authority - urged an 'immediate' intervention by the world community to 'end Israel's siege' of the Gaza strip.

In a joint statement, the four Arab states rejected Israel's practices deemed as 'hindrances to UNRWA's work and the freedom of movement of its employees'.