Israel’s Classification As a Developing Nation to Be Discussed

Yehoshua Rabinowitz. Israel’s Minister of Finance, and Moshe Zanbar, Governor of the Bank of Israel, will meet with World Bank President Robert McNamara tomorrow to discuss continued classification of Israel as a “developing nation.” It is understood that in view of Israel’s gross national product, the country may be removed from the list and thus become ineligible for a $40 million loan from the bank. Israel’s contention is that its GNP is misleading in view of its cost to absorb immigration and its defense burden.

Rabinowitz, who is a Governor of the International Monetary Fund, told the Board of Governors of the IMF and the World Bank at their annual meeting here that the establishment of an export credit guarantee facility would benefit both importing and exporting developing countries. He said that such a facility as outlined by Zanbar has been approved by several Asian, European and Latin American countries. The World Bank. Rabinowitz said, “should take a leading role in this endeavor in cooperation with the regional development bank.”

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