The study introduces the different types of public debt, setting them in an international context and reviewing the causes of problems associated with them. It then reviews the growth of the Palestinian public debt during the years of Intifada, examining its causes, nature, and implications for the future. It examines the possible risks (such as market risk, liquidity risk, settlement risk, and operational risk) and presents the indicators of external vulnerability. Despite recently sky-rocketing, the Palestinian public debt remains under control because most of it is soft loans given to the PNA to meet its financial needs during adverse conditions. In addition, the public debt to Gross Domestic Product ratio remains low compared to all other countries in the region.
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