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Germany Announces Agreement on Payments to Israelis

The Bank Leumi Le Israel will in the future be the sole channel for payments in marks by Germany to Israeli residents, according to an agreement reached by the Israeli Ministry of Finance and the Bonn Ministry of Economics.

The agreement, announced yesterday, provides that the Israel national bank shall establish special accounts with two German banks of payment–the Sueddeutsche Bank of Frankfurt and the Rheinische Giro-Zentrale Bank of Cologne–through which the German Government will pay restitution, indemnification and pensions remittances and dividends or profits from investments in Germany.

Negotiations, it was revealed, are in progress to see whether a system can be worked out for Israeli residents to have payments due them remitted to a third country.