WASHINGTON (Nov. 14)
A commodity sales agreement providing funds for lending in Israel by the Export-Import Bank of Washington under Public Law 480 has been completed by the United States and Israel. Under terms of the law, 25 percent of the Israeli pounds to be derived under the commodity sales agreement with Israel will be made available to the Export-Import Bank for loans in Israel.
Under the legislation the bank may lend these Israeli pounds to U.S. firms or their branches, subsidiaries, or affiliates for business development and trade expansion in Israel, or to U.S. or Israeli firms for expanding markets for and the consumption of U.S. agricultural products. The law requires that the loans be mutually agreeable to the Export-Import Bank and Israel’s Ministry of Finance.
The loans will be made and will be repayable in Israeli pounds. Maturities will correspond generally to those used in the bank’s dollar loans to private borrowers. It is intended that the interest rates will be similar to those charged for comparable loans in Israel. The bank is prepared to receive applications for loans under the Israeli commodity sales agreement. Applications will be received either directly at the Export-Import Bank in Washington or at the U.S. Embassy in Tel Aviv.
Funds will not accrue to the Export-Import Bank for the purpose of loans in Israel, however, until payment is received under transactions authorized by the commodity sales agreement. The bank will not authorize loans under applications that may be submitted until the bank is in receipt or such funds. The U.S. Department of Agriculture recently made known that it is prepared to issue purchase authorizations up to $35, 000, 000 for various commodities for Israel.