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Delay on U.S. Loan to Israel Aggravates Israel’s Financial Position

The Israel Government appointed today a special committee to study the import situation in an attempt to cut down the high foreign currency deficit expected in the new year.

Dollar income from a number of sources are expected to drop, with the major blow to Israel’s foreign currency situation coming from the year-long delay in Washington of a decision on Israel’s request for a $75,000,000 loan from the Export-Import Bank.

At the same time, foreign currency allocations for the import of consumer goods and raw materials for local industry has risen–reportedly in some categories to the extent that 75 to 85 percent of the amount earmarked for the fiscal year was exhausted in half that time. Evidently, the imposition of higher import duties at the same time that import licensing requirements were liberalized did not balance each other.