The International Monetary Fund ( IMF) recently turned down an Israeli request to arrange a 100- million-U.S. dollar bridge loan for the Palestinian National Authority (PNA), local press reported Monday.

According to the plan, Israel would take out the loan on behalf of the PNA, in order to shore up its cash-starved economy, Israeli officials told the Ha'aretz daily.

IMF loan provisions, however, forbid lending money to non-state actors, such as the PNA, hence Israel's request was turned down, the report said.

Israeli Prime Minister Benjamin Netanyahu is "interested in preventing a situation whereby the PNA collapses financially, which is liable to have a very negative impact on the West Bank security situation," a senior Israeli official told the newspaper.

The request was made in the wake of meetings between PNA Prime Minister Salim Fayyad and Bank of Israel Governor Stanley Fischer at the IMF's annual meeting held in Washington in April.

Netanyahu approved Fischer's idea of turning to the international body for financial assistance.

Fayyad said that both the Euro and American financial crises precluded their providing any assistance to the Palestinians, and that promised funds from Arab states were not forthcoming.

Additionally, Palestinian banking institutions refused to extended a line of credit to the PNA, severely limiting its ability to make monthly salary payments to employees, particularly security personnel.