JERUSALEM (Dec. 2)
The Israel Government plans to invest at least $200,000,000 in the next five years in government-owned companies, it was indicated here today.
One-third of loans to be made here after from the Israel Development Budget to government-owned industries will be in the form of share capital and the other two-thirds will be 14-year four-percent loans, it was announced. Previously, the Government gave medium-term loans at commercial interest rates which produced heavy financial burdens for the companies.
The Government also plans to convert existing loans into share capital and long-term loans in an effort to make such companies more attractive to private investments, particularly from abroad, by improving the financial positions of such industries.