NEW YORK (Dec. 2)
Israel will deposit $50 million in the Chase Manhattan Bank, the Jewish State’s fiscal agent, on Dec. 23 in its largest single redemption of State of Israel Bonds. Minister Without Portfolio Pinhas Sapir, the former Finance Minister, will make the payment to the bank. Of the total, $48.5 million is to be paid out for coupon bonds of the First Development Issue which mature next Jan. 1. The balance will go to owners of certain other maturing Israel Bonds.
Following the transaction, Mr. Sapir will be guest of honor at a dinner of the board of governors of the Israel Bond Organization. Dr. Joseph J. Schwartz, its vice-president, noted that “Israel is making this payment promptly and in full even though it must carry heavy burdens as a result of the continuing crisis in the Middle East.” He stressed that “Israel has never defaulted on any financial obligation during its entire history.” He urged those whose bonds were being redeemed to purchase new State of Israel Bonds.