MIFTAH
Monday, 1 July. 2024
 
Your Key to Palestine
The Palestinian Initiatives for The Promotoion of Global Dialogue and Democracy
 
 
 

A random cross section of 2,500 household heads (1,500 in West Bank and 1,000 in Gaza) were asked about personal debt, sale of assets and financial responsibilities now and a year ago. Their replies tell that:

In the past year debt has increased for 53% of household heads in West Bank and 68% in Gaza.

The average household debt is between $1,250 and $2,500. Over a half (53.7%) of households owe more than $1,250 and one third (32.9%) owe more than $2,500.

This suggests that the cumulative debt of households in West Bank is more than $600 million and is $270 million in Gaza.

In Gaza one in every 15 (7.6%) household heads owes more than $ 25,000.

This suggests that the cumulative debt owed by this small portion of the population is in excess of $426 million.

On average heads of household in West Bank are responsible for feeding 5 people, school costs for 3 people and medical costs for 5 people.

On average heads of household in Gaza are responsible for feeding 7 people, school costs for 3 people and medical costs for 6 people.

The greatest number of households owe money to their electricity supplier (71% in West Bank and 86% in Gaza); second, to their grocer (58% in West Bank and 70% in Gaza) and third to then to their water supplier (51% in West Bank and 64% in Gaza).

Half the household heads in Gaza and one third of the household heads in West Bank owe money to friends, the same proportion owe money to relatives and the same proportion again owe money to their municipality

One in four household heads in Gaza and West Bank owe money to their bank

The biggest debts are owed to the electricity supplier, followed by the bank and third, by the grocer. In Gaza the biggest debt for half (48%) of the households is to the electricity supplier, in West Bank it is the biggest creditor for a quarter of the households (25%) and for another quarter it is the bank (22%).

In the past year around four in every ten households (44% in West Bank, 41% in Gaza) sold assets (personal items, household goods, jewelry or furniture). They raised an average of between $250 and $1,250 in West Bank and $1,250 and $2,500 in Gaza. This is less than the average debt in West Bank and equivalent to the average debt in Gaza.

Today, three quarters of households (73% in West Bank, 79% in Gaza) say they have no more assets to sell.

When asked their opinion of the situation of the Palestinian people over the next few weeks two thirds (66%) of household heads said they thought it would get worse. When the same question was asked in March 2007 less than one third (29%) said they thought it would get worse .

72.7% of the household heads in West Bank and 57.5% in Gaza had current employment, while 27.3% in West Bank and 42.5% in Gaza were currently unemployed or retired.

There is no difference between men and women in their debt situation except that more men owe money to their bank.

Compared to a year ago, there has been no increase in the number of dependants household heads say they are responsible for feeding, schooling or paying medical costs.

Additional information

The population of West Bank (including Jerusalem governate) is 2,922,812 living in approximately 487,135 households .

The population of Gaza is 1,492,425 living in approximately 213,204 households .

The average annual salary is $3,463 .

When people who owe money to a bank get a direct payment from the temporary international mechanism (TIM) into their bank, the bank takes 30% towards their overdraft .

 
 
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