Israel Government Approves Saving Plans Aiming to Check Inflation

The Israel Government today approved two new saving schemes designed to counter inflationary trends. The savings schemes originated with the Bank Leumi Leisrael and the Palestine Discount Bank.

Details of the Discount Bank plan, to which the Bank Leumi scheme is similar, include provisions for two kinds of savings. The first calls for bulk deposits ranging from 100 to 5,000 Israel pounds to be kept in the bank for five years. At the end of that period, the investor would receive a 33-1/3 percent tax-free dividend, with a proportional reduction in the premium for shorter periods of time.

The second project calls for monthly savings, ranging from five to one hundred Israel pounds, with a 15 percent tax-free dividend at the end of five years, and proportional reductions as in the first plan. The banks will invest the money they receive only with Finance Ministry approval.

In announcing the new plan today, the Bank Leumi pointed out a number of other trends which it termed anti-inflationary. Specifically, it cited the stabilization of the payments balance and the success of a new bond offering of the Palestine Electric Corporation.

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