World Bank fund to help run Palestinian ministries

JERUSALEM, Sep 18 (Reuters) The World Bank said today that a trust fund it administers would finance the non-salary budgets of the Palestinian ministries of health, education and social affairs over the next seven months.

A World Bank statement said the lending agency and Palestinian President Mahmoud Abbas's office signed an agreement to administer a 46.6 million dollar grant for the occupied West Bank and the Gaza Strip.

The Bank said the grant money will be used to cover ministry running costs and to purchase supplies for hospitals, schools and shelters.

A Western aid embargo has prevented the Hamas-led Palestinian Authority from paying salaries to its 165,000 workers since March, when the Islamic militant group took power.

A strike started this month by government workers has shut down many Palestinian public schools, hospitals and health clinics.

The World Bank money will bypass Hamas, whose charter calls for Israel's destruction, and will not be used to pay government salaries.

The World Bank has operated the so-called multi-donor trust fund since early 2002.

REUTERS PDS BST0129