RSS Feed
Washington - U.S. Reapproves Loan Guarantees With Israel |
|
| |
Text Size
|
Washington - The Israeli Finance Ministry announced today that the United States re-approved its Israel loan guarantees program launched in 2002 to help the country deal with a crippling recession caused by a global downturn and a wave of Palestinian Authority suicide bombings. At the time, the U.S. provided a package of $9 billion in loan guarantees to enable Israel to sell bonds internationally. The guarantees have helped Israel earn upgrades by credit rating agencies.
Israel still has $3.8 billion left to use by 2011 after already issuing $4.1 billion in U.S. backed bonds and following a $1.1 billion deduction penalty for Israeli settlement building and concerns over the anti-terrorism separation fence. Israel would only be able to use up to $3.2 billion in 2009 but another $333.3 million will be released in 2010 and another $333.3 million in 2011 if Israel sticks to its fiscal targets.
More of today's headlines
“Brooklyn, NY - The city's first Hasidic cop was excoriated in a anti-Semitic rant by a dog-loving subway passenger who allegedly refused to place her sick pet in an...”
Brooklyn, NY - Witness: Subway Rider Cursed Anti-Semitic Slurs Against Hasidic Cop
Lima, Peru - Peruvian Jewish Prime Minister Survives No Confidence Vote
Total7
Read Comments (7) — Post Yours »
1
Jul 01, 2009 at 12:36 AM Anonymous Says:
thank you mister president!
2
Jul 01, 2009 at 12:07 AM Chaim B. Says:
Is this good news ? I simply didn;t understand these complicated terms.
3
Jul 01, 2009 at 08:20 AM Eli Says:
“ Is this good news ? I simply didn;t understand these complicated terms. ”
Yes- the bonds, which are loans to the Israeli government, have higher interest rates if there is a greater chance that Israel will be unable to repay its debts. Since America is agreeing to pay in the event Israel cannot, this lowers the chance of default, which makes it much easier for Israel to sell the bonds, as the interest that they have to pay is much lower.
4
Jul 01, 2009 at 11:13 AM Anonymous Says:
Pardon my mentality but this sounds a little fishy...
Do you remember the Bush-Baker loan linkeage to Israei policies on settlements...
In my humble opinion Obama needs a leverage to play with Israel in order to make further demands about settlement freeze...
5
Jul 01, 2009 at 02:08 PM Anonymous Says:
“ Pardon my mentality but this sounds a little fishy...
Do you remember the Bush-Baker loan linkeage to Israei policies on settlements...
In my humble opinion Obama needs a leverage to play with Israel in order to make further demands about settlement freeze... ”
this is the same as every other president, its a long term part of the us / israel relationship
6
Jul 01, 2009 at 05:09 PM Milhouse Says:
“ Yes- the bonds, which are loans to the Israeli government, have higher interest rates if there is a greater chance that Israel will be unable to repay its debts. Since America is agreeing to pay in the event Israel cannot, this lowers the chance of default, which makes it much easier for Israel to sell the bonds, as the interest that they have to pay is much lower. ”
And it doesn't cost the USA a cent, since Israel has never defaulted and is unlikely ever to default.
7
Jul 03, 2009 at 03:59 AM Anonymous Says:
This $9 billion is on top of the $10 billion granted in 1992 for a total of $19 billion. Not exactly chump change.