Doha: Palestinian prime minister Ismail Haniyeh said on Sunday that Qatar will pay the salaries of 40,000 Palestinian education employees for several months, easing a financial crisis caused by sanctions imposed by western powers.

Speaking in Doha, Ismail Haniyeh said: "Qatar will pay the salaries of all the education employees, who are 40,000. This amount will total $22.5 million per month for the coming several months starting now."

A Qatari delegation is expected to travel to the Palestinian territories in 10 days to discuss establishing an Islamic bank with a $50 million capital, which will be increased to $100 million to finance development there, such as the building of a sports city.

Qatar was also considering contributing $7 million per month to the Palestinian health sector.

The Palestinian economy suffered terribly after Western powers withdrew financial aid following Hamas taking power and their failure to recognise Israel.