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$7,000,000 Credit Announced by Ampal for Housing of Immigrants in Israel

Financing totalling seven million dollars has been extended Ampal American Israel Corporation of New York, to the Jewish Agency for Israel of Jerusalem and the Israel Government Central Housing Instrumentality, Amidar Ltd., to finance construction of new dwellings for immigrants arriving in Israel, Abraham Dickenstein, president of Ampal announced here today.

Mr. Dickenstein said that the financing is in response to a request made last week by the Jewish Agency in Jerusalem and the Government’s Immigrant Housing Authorities, highlighting to growing emergency which is threatening Israel’s program of resettlement and housing for immigrants. Five million dollars in loans were given directly to the Jewish Agency, Jerusalem, and two million was extended to the Government Housing Instrumentality through Bank Hapoalim.

Simultaneously with the announcement of this financing, Mr. Dickenstein reported that activities were at record level during the three months ended June 30, 1961. During the quarter he noted, Israel Development Corporation, an affiliate, acquired 900,000 common shares of the Dead Sea Works Ltd. for $520,000, and itself purchased $2,000,000 of eight-year debentures of subsidiary, the Israel American Industrial Development Bank Ltd. Ampal also deposited $500,000 with the same bank to be repaid during five to 20 years. The Israel American Industrial Development Bank then extended loans to existing and newly established industries in Israel to create employment for new immigrants.

During this quarter, Ampal extended additional long-term financing and has given other loans to large cooperative institutions engaged in building and harbor construction in Israel and foreign countries in Asia, Europe and Africa, health insurance organization, agricultural and industrial enterprises for an amount of $3,873,000, which brings the total financing of the Ampal Group during the past three months to $15,895,000. Mr. Dickenstein stated that the Board of Directors of the Ampal Group will meet on August 8, 1961 to discuss and act upon additional investments in basic industry in Israel.

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