Israeli Will Not Seek Further Loans from International Monetary Fund

A Finance Ministry spokesman said today that Israel will not apply for further loans from the International Monetary Fund because of the conditions imposed by it. He said the IMF would probably demand that Israel reduce its foreign exchange expenditures which cannot be done owing to the requirements of national defense and immigration.

He said the IMF granted loans above a country’s quota provided that their purpose was to bridge a temporary gap in the country’s foreign exchange position.

The ministerial committee on economic affairs announced yesterday that the sale of foreign mutual funds in Israel will be permitted in the future provided that the companies comply with a list of stringent requirements. Two foreign-based mutual funds have been operating in Israel for the past two years. About 20 applications have been received from other funds but have been left pending.

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