The US government has said it will give the Palestinian Authority $20 million to help it through a financial crisis.
A spokesman for the Bush administration said the government hoped the aid donation would encourage other nations to help the Palestinian Authority.
He said the authority 'is in desperate need of budget support to pay its bills, maintain stability and allow it to focus on the larger question of governing'.
The financial crisis within the Palestinian Authority is due to falling tax revenues after violence has crippled the Palestinian economy.
A poll to elect a new Palestinian leader is due to be held on 9 January, and the US is hoping the $20m will help the authority to negotiate a peace deal with Israel.
