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(ANSAmed) - BRUSSELS, SEPTEMBER 23 - The European Union has provided a further EUR 4.7 million to support the payment of the Palestinian Authority's arrears to the private sector, bringing the EU contribution to this programme to a total of over EUR 24 million in 2008. Since the beginning of 2008, the European mechanism for assistance to the Palestinians, PEGASE, has provided direct support to almost 650 businesses in the occupied Palestinian territory, around 40% of which are in the Gaza Strip and 60% in the West Bank. These are mostly small and medium sized businesses which provide a variety of goods and services to the Palestinian Authority, including maintenance, rent, fuel, furniture and equipment. "As a result of the financial crisis and the particularly difficult trading environment, the Palestinian Authority's unpaid bills to the private sector led to the bankruptcy of several businesses", explains John Kjaer, the European Commission Representative in Jerusalem. "This scheme has provided critical support to private businesses, supporting the PA in its efforts to revive the Palestinian economy".(ANSAmed).