Palestinian Prime Minister Salam Fayyad quit yesterday after months of tension with President Mahmoud Abbas, leaving the administration in disarray just as the United States tries to revive peace talks with Israel.
Abbas, who has been unhappy with Fayyad's handling of the cash-strapped government, accepted the resignation and asked Fayyad to stay on as caretaker until a new government is formed, according to official Palestinian news agency WAFA.
Palestinian law requires the president to appoint a new prime minister within two weeks. Mr Fayyad, a Texas-educated former World Bank official, is credited with helping create institutions in the occupied West Bank.
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