President Mahmoud Abbas warned on Thursday that without the pledged Arab "safety net" for the Palestinian coffers, Palestine will be in a difficult situation.

The Arab League states pledged to pay Abbas' Palestinian Authority $100 million a month, but has yet to deliver. Abbas said at a PLO meeting that the leadership was using "all possible means" to push for the funds.

The president noted that Israel's seizure of tax revenues had worsened the financial crisis, and slammed the continued building of settlements.

He warned that Israel as an occupying power had no right to change the geography or demography of the occupied Palestinian land.

"We hope that the year of 2013 will be a good year for the Palestinian people and the whole world," he told the meeting.

"We also hope that Israel will return to its senses and understand that peace is in its interests and the interests of their children and the interests of the Palestinian generations and the whole world," he continued.