Proposed reforms of the management of the Palestinian economy have been welcomed by the head of the International Monetary Fund, Michel Camdessus.

The Palestinian Authority announced policy changes last week which include a new financial management body and assurances that tax revenues and public accounts would be the responsibility of the Finance Ministry.

Mr Camdessus said in a statement that he hoped to meet the Palestinian leader, Yasser Arafat, in Washington on Friday to review economic issues.

He said an IMF team planned to go visit the West Bank and the Gaza Strip later this month to discuss the new policy in detail.

From the newsroom of the BBC World Service