• What we are experiencing is not a fleeting crisis but a real existential threat to the economy and institutions • Targeting Palestinian banks is playing with fire and crossing all red lines • Budget support in 2025 is a political message before it is a financial figure • Clearance is a political battle, not a technical one, and Israel uses money as a weapon • We only own 30% of our revenues • Tax compliance is not just a legal duty but a lever for the continued provision of services • International partnerships are temporary support without compromising national decision-making • Employees' rights are preserved and will not be canceled no matter how severe the crisis. In one of the most complex political and economic stages, where financial pressures intersect with direct political targeting of the components of national existence, "Al-Quds" conducted a lengthy interview with the Minister of Finance, Dr. Estephan Salameh, prepared and conducted by journalist Muhannad Yassin, to ascertain the reality of the financial situation, the limits of the current crisis, and the government's approaches to dealing with it, away from embellishment or rhetorical discourse. Minister Salameh placed the figures in their political context, speaking frankly about an "existential crisis" and about steadfastness managed by the logic of daily miracles, reviewing the features of the clearance piracy crisis, public debt, the role of the banking sector, and the relationship with the international community, emphasizing that what is happening is not a fleeting financial crisis, but a historical test for the survival of Palestinian institutions and economy. A financial crisis representing existential risks Q- Is there a frank discussion with the people about the financial crisis? The Palestinian economy has experienced complex crises for decades, but it has managed to adapt to them in one way or another despite their cumulative effects. However, the withholding of clearance funds for the tenth month has significantly disrupted economic activity in the country and limited our ability to maintain a stable economic situation and provide sufficient employment within Palestinian society. Frankness exists, and communication with the people is ongoing through relevant institutions, but frankly, we must speak more clearly. We face a real existential crisis. This existential crisis means that Israel is besieging us from all fronts, and the financial and economic dimension is an essential part of it. Israel seeks to influence the existence of Palestinian institutions and their ability to provide basic services, and aims to destroy the Palestinian economy and make it completely dependent. Recently, the targeting has been clearly directed at the Palestinian banking system, which is practically the backbone of the Palestinian economy. When Palestinian banks are targeted, they are practically, in popular terms, "playing with fire," meaning they have crossed all red lines and taboos. This targeting is clear in its objectives, which is to destroy Palestinian institutions, including the Palestinian economy, and foremost among them, Palestinian banks. Therefore, the crisis we are experiencing is not a fleeting crisis, nor merely a temporary emergency we are going through, but it is, in my opinion, an existential crisis. And the existential threat we face is a reality, not a matter of imagination or exaggeration. Q- What are the features of your crisis management? We are working on several fronts to confront these challenges and this existential crisis I spoke about. The lines of work we are engaged in can be summarized as follows: First: Through our relations with the international community, we seek to achieve two goals. The first is political, but at the same time, it aims to support the Palestinian economy and the Palestinian financial system, including treasury support, which constitutes a kind of protection and stability for political decision-making. "Frankly, we have many friends in the world, and there are those who try to downplay the importance of this path, and I believe that this underestimation not only affects the efforts made but also diminishes the importance and impact of international relations, which have become a fundamental supporter for us today at the popular level, and at the level of governments and decision-makers (...) This path helped us, for example, last year, to achieve a tangible increase in international support for the budget and treasury. International support is divided into three parts: a part for relief, a part for development and project support, and a part for budget support." Relief support and project support are generally stable, despite the decline in American and some other countries' support in the development field, but the overall situation is stable and has not significantly affected us. As for budget support, it has seen a real breakthrough. It rose from about 200 to 250 million dollars previously, to reach more than 800 million dollars in 2025. It is true that this amount is not enough, but it covers about two months of operational needs, including salary payments and others, and it is very important, and the political message behind it is more important than its financial value. Clearance is a political battle, not a technical one. Second, everything we do does not negate the recovery of our rights. Our primary goal is to pressure Israel to release clearance funds and adhere to international and bilateral agreements, whether related to the shekel crisis, mutual banking relations, or our revenues, of which clearance constitutes the largest part. This path is primarily political, not technical, as the technical aspects exist and are resolved, but the crisis is purely political. The current Israeli government wants us to collapse and is closing in on us politically, financially, and economically by drying up resources, with the aim of bringing down institutions. That is why I say that the importance of the Palestinian National Authority today is greater than ever before, because Israel has realized that the Authority is the tool, or the vehicle, that leads to the Palestinian state. This realization came as a result of the international achievements that have been made, including the recognition of 159 countries of the State of Palestine. Despite attempts to downplay the importance of this recognition, it is very important and has a direct impact on us. Some may ask: Has this recognition changed the reality? And I say that it has increased pressure on Israel, changed our international status, and changed the nature of our developmental, financial, and economic relations with these countries. Steadfastness with the equation of daily miracles Third, internal measures to enhance steadfastness. In light of resource scarcity, we try to manage them better. We focus on sectors with an existential dimension, such as education, health, and security, because they are sectors that no state or society can live without. We also give special importance to Jerusalem, and provide the minimum for other institutions, while rationalizing expenditures, and working intensively to increase revenues. Israel asks how the Authority is still standing despite all the siege and pressures on banks, government, and the private sector. The answer is that all components of Palestinian society stand shoulder to shoulder. And we, as the Ministry of Finance, are entrusted with public money, working to reform systems, reduce corruption, enhance revenues, reduce expenditures, and put money in the right place. Every month is suffering, and every month is a miracle, made by the collective effort of all parties of Palestinian society. Here I say frankly, and it is a sensitive but important issue: there is massive tax evasion. In light of the existential crisis we are experiencing, leniency in this matter is no longer acceptable. Whoever does not fulfill their tax duty does not fulfill their national duty, because this duty has become part of the battle for steadfastness. Non-compliance with taxes negatively contributes to the collapse of the institutions we need to continue providing hundreds of services to citizens. In numbers, clearance constitutes between 68% and 70% of our revenues, and no country in the world can live without 70% of its revenues. The normal situation is for the Authority to collapse, but what we are experiencing today is an abnormal situation. The steadfastness of this people and its institutions is a true miracle. Our local revenues constitute about 30%, or about 400 million shekels, a large part of which, an average of about 300 million shekels, goes to service loans. In contrast, we need approximately one billion shekels monthly to maintain the minimum operation of institutions, of which about 720 to 750 million shekels are for salaries and quasi-salaries at only 60%, in addition to about 200 million shekels for operational needs, especially the health sector, where we have large debts to hospitals and for medicines. We do not have 100% of the resources and we pay 60%, but we have much less than that, and yet we continue. And this is the miracle I am talking about, and it is not only the result of financial management, but the result of the solidarity of all components of Palestinian society. Banks are playing their national role, Palestinian companies are playing their role, public sector employees with their patience and endurance, the private sector, civil society, mothers, families, and government institutions, including the Ministry of Finance and the Monetary Authority, all are working in harmony, under the guidance of His Excellency the President and the Prime Minister, to achieve this miracle month after month. Q- There is a complete withholding of clearance funds, but in return, there is an increase in external grants. What is your explanation for this? In short, our financial situation began to deteriorate a long time ago. We witnessed clear attempts to punish us after we turned to the United Nations General Assembly and obtained observer state status. Since then, international support, especially budget support, began to decline, because this file is directly linked to politics. Nevertheless, we are moving according to our national priorities and national rights, and we are proceeding on this path under the guidance of His Excellency the President, despite the consequences, including the financial consequences that we knew would come. This support gradually declined until it practically stopped in 2017, and no longer exceeded about 200 million dollars, limited to a small number of countries. Last year, we were able to break this ban on budget support, by proposing the idea of emergency treasury support, which was announced by His Excellency Saudi Foreign Minister Faisal bin Farhan in partnership with Spain, Norway, and France. And we have indeed started receiving support in this framework, although this path still requires additional efforts to ensure its continuity. This announcement constituted a clear break of the ban imposed on budget support, and was in its essence also a message of political support for the Palestinian National Authority. In light of the Israeli aggression aimed at destroying the Authority, the international community became more aware of the importance of providing direct financial support and simultaneous political support, to maintain the continuity of the Authority and its role. Grants between reality and alternatives Q- Can we expect more foreign aid, especially Arab aid? First, it is important to emphasize a crucial point: budget support figures vary from year to year, and each year has its own specificities. Therefore, it is important to be precise when discussing them. Last year, budget support amounted to approximately 800 million dollars, noting that part of this support has not yet been disbursed, and the full amount was not disbursed during 2025. This is for clarification and accuracy. To be frank, direct Arab aid to the treasury is currently limited to two main countries: Saudi Arabia and Algeria. This is the current reality, with an emphasis that there is room to develop and increase this support in the coming period. As for support for development projects, it usually ranges annually between 300 and 400 million dollars. If we combine last year's figures, between budget support and project support, the total support reaches about 1.2 billion dollars. In contrast, there is significant support allocated for relief, especially in light of the humanitarian catastrophe and genocide in the Gaza Strip. This support may reach billions of dollars, but it is not included in our figures because it is humanitarian relief support that does not enter the general budget, but is considered a separate international responsibility. Therefore, when discussing the international support we rely on in our calculations, we are specifically referring to budget support and developmental project support only, which can be estimated at about 1.2 billion dollars annually. With an emphasis that these figures are not fixed, as developmental support may increase in one year and budget support may decrease in another, depending on political and economic circumstances. Consequently, support levels fluctuate and do not follow a single pattern. Q- Are foreign grants conditional? For us, we do not treat foreign relations as a relationship of orders or dictates. With all humility, we deal with them from a partnership perspective. Palestine seeks to build bridges with everyone; we are not looking for enemies, but rather working to build bridges with all friendly and sisterly countries. Therefore, I always make sure to use the term "partnerships" rather than "aid." We are not a people incapable of relying on ourselves, nor are we an uneducated people. We are an educated people, and we have real capabilities that enable us to rely on ourselves. What compels us to receive external support is the reality of the occupation, which controls our resources, money, and capabilities. Ending the occupation is enough to make us independent of this aid. Hence, the primary goal of the partnerships we build is political, which is to contribute to ending the occupation, and temporarily support us financially and economically to strengthen our steadfastness. It is true that these partnerships sometimes have consequences and obligations, but we are keen to manage them in a way that does not affect our national policies and does not detract from our legitimate rights. Public Debt: A Product of Political Siege Q- How much is the public debt, and what are your expectations for the current year? Data indicates that Palestine's public debt reached an unprecedented level of approximately 15 billion dollars by the end of 2025, equivalent to about 54-55 billion shekels. This figure cannot be separated from the coercive political context imposed by Israeli occupation measures. A large part of this debt does not reflect internal spending imbalances but rather stems from the withholding of clearance funds, which constitute between 68% and 70% of public revenues, and from the Israeli legal offensive, which involved approximately 430 lawsuits totaling about 45 billion shekels, used as a systematic tool of pressure to paralyze public finances and push the Authority towards internal borrowing. In contrast, the Palestinian banking sector formed the last line of defense to prevent financial collapse, by continuing to lend to secure salaries and minimum operations, despite high risks and escalating targeting. As for 2026, forecasts do not indicate a fundamental decline in the size of the debt, but rather its management within the logic of steadfastness, not recovery. Any improvement remains conditional on the full release of clearance funds, the cessation of Israeli lawsuits, and a pressing international political shift that translates into sustainable financial support. Without that, public debt will remain part of the tools of political conflict rather than a traditional financial indicator. Entitlements are preserved and will not be canceled Q- Are there any assumptions indicating the cancellation of public employees' entitlements from the government? And how much were the entitlements until the end of January 2026? No, absolutely not. This is not on the table at all. We emphasize this monthly when salaries are disbursed. We clearly announce that the accumulated entitlements of public employees are fully preserved financial liabilities, and will not be canceled or waived under any circumstances. These entitlements are a fixed right for employees, and they are recorded and recognized, and they will be fulfilled as soon as financial capabilities are available. What is currently happening is a forced postponement resulting from the financial crisis, not a cancellation or write-off of rights.