NEW YORK (Nov. 21)
The devaluation of Israel’s currency will have no effect on the value of Israel Bonds or on the interest they pay because they are dollar bonds and both the interest and the redemption of matured bonds are paid by Israel in U.S. dollars, Dr. Joseph J. Schwartz, vice president of the Israel Bond Organization, declared here today.
Dr. Schwartz explained that bondholders who convert their bonds into Israel currency will have the advantage of receiving IL 350 insteal of IL 300 for each $100 in bonds as a result of the devaluation of the Israel pound from 3 to 3.5 to the dollar. He said that subscribers may, prior to maturity, convert their bonds in Israel into pounds for tourist expenses during their stay, and may also, under certain conditions, convert Israel bonds into pounds for the purchase of shares in approved business enterprises in Israel.
“From Israel’s point of view,” Dr. Schwartz said, “the dollars provided through Israel Bond campaigns from now on will go that much further, as a consequence of devaluation, in providing for the expansion of her economy.”
The American Israel Paper Mills Ltd., announced that despite the devaluation of the Israeli pound, its stockholders would continue to receive a semi-annual cash dividend at the same rate of return as during the past two years. The company’s board of directors declared an interim cash dividend which offset the effect of the devaluation of the pound by increasing the dividend rate.