London Bank Grants $6,230,000 Loan to Keren Hayesod in Israel

A 2,250,000 pound ($6,230,000) loan agreement between Lloyd’s Bank and the Keren Hayesod and the Jewish Agency was signed here today. The loan was signed by Jewish Agency treasurer Dr. Giora Josephtal and Israel Sieff for the Keren Hayesod.

The new loan is to be repaid in four quarterly annual installments between Jan, 1, 1957 and Oct. 1, 1963. The interest rate is set one percent higher than the prevailing Bank of England discount rate–currently 5-1/2 percent-with the proviso that it cannot go below 4-1/2 percent in any event.

The main items to be purchased with the aid of the new loan are buses to enlarge Israel’s transport facilities, particularly in new settlements, heavy agricultural equipment such as tractors and combines, and aluminum pipes for irrigation projects.

In a statement to the Jewish Telegraphic Agency, Dr. Josephtal said: “Owing to the foreign currency regulations of Great Britain, it is not an easy task to expand the trade and financial relations between the two countries.” He expressed great appreciation for the attitude of Lloyd’s Bank and the British Treasury, which approved the loan. The Agency treasurer stressed that this was the first step toward strengthening the trade relations between the two countries.

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