Since the West Bank and Gaza is not at sovereign state, it cannot apply for membership of the IMF or the World Bank Group, and is therefore not eligible for the sources of financing normally available to Member states. To overcome these legal and practical problems, the Trust Fund for Gaza and West Bank (TFGWB) was established in 1993. The TFGWB has periodically been replenished through allocations from the World Bank’s surplus/net income. To date, a total of six allocations for a total of US$510 million have been made, the most recent in December 2006. An additional US$83.9 million has been received in the TFGWB from investment income and from service charges and commitment fees on outstanding Credits. This brings the total resources to US593.9 million. Since 2002 all West Bank and Gaza projects have been approved on grant terms.
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