Cabinet Asks Bank of Israel for $37 Million Loan for Aircraft, Other Purchases

The Cabinet has asked the Bank of Israel for a loan of $37 million for the purchase of civilian aircraft and other civilian outlays. A Treasury spokesman explained that the loan request stemmed from the fact that under a new tightening of United States credits, the Export-Import Bank no longer loans as large a proportion as before for aircraft purchases in the United States.

Israel’s national airline. El Al, plans to buy two more Boeing 707 jet airliners and one of the giant Boeing 747 passenger planes for which a down payment of $18 million is required. Another $10 million is needed for construction of the oil pipeline now being built from Eilat to Ashkelon and $6 million to complete a new dam at the Dead Sea Potash Works. The other $3 million is needed for equipment for a petro-chemical complex being erected in the Arad area.

The Government decided to ask the bank for the loans rather than commercial banks because of existing high interest rates. The transaction is subject to approval by Parliament.

NEXT STORY