(Ha'aretz) Barak Ravid - The U.S. government has informed Israel that it will recommend a three-year extension of loan guarantees to Israel, worth $3.8 billion. The loan guarantees agreement between the U.S. and Israel began in 2003, and Israel last raised money through it in 2004. According to a senior Foreign Ministry official, the loan guarantees have importance to global credit agencies, who view them as a "safety net" for the Israeli economy. "We consider the loan guarantees as preparation for a rainy day," he said. "This is a safety net for war, natural disaster and economic crisis, which allows Israel to maintain economic stability in unstable surroundings."
2012-01-25 00:00:00Full ArticleBACK Visit the Daily Alert Archive