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$50m in Housing Loans to Israel

Israeli and American officials will sign tomorrow an agreement guaranteeing private loans totalling $50 million to finance the construction of approximately 11,000 homes for lower middle income families in Israel. The agreement will be signed at the State Department by Pinhas Sapir, Finance Minister of Israel, and John A. Hannah, administrator of the US Agency for International Development. The loans will be made by American savings and loan institutions to Tefahot, the Israel government controlled mortgage bank. Interest charges will be 71/2 percent. The loan to Israel is the largest made thus far under the AID program and is the first loan for housing made to Israel. The loan was negotiated in 12 months, the shortest time on record. Sapir is in the US for appearances at United Jewish Appeal and Israel Bond Organization rallies.