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Israel Cabinet Decides to Float a $100, 000, 000 Bond Issue; Raises Interest

Israel’s Cabinet voted at its regular, weekly meeting here yesterday to float a $100, 000, 000 bond issue, redeemable after 20 years, at an interest rate of 4. 75 percent. The decision requires approval by the Knesset.

Previous Israel bond issues paid 4 percent, but the interest rate was raised in line with higher interest rates now in effect in the United States. The previous issues were redeemable after 15 years. The new bonds will be issued to banks only and will not be sold to individuals.