Bonn Considers Israeli Loan Request
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Bonn Considers Israeli Loan Request

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An Israeli request for 10 billion marks — some $6.75 billion — in loan guarantees and outright assistance has become the focus of public interest here in the past week.

Well-informed sources in the German government said Bonn was considering its response to the request as part of preparations for a visit by Prime Minister Yitzhak Rabin to this country.

Rabin, who will attend a meeting of the Socialist International in Berlin on Sept. 10, is also expected to visit Bonn and meet with German officials, including Chancellor Helmut Kohl.

According to German sources, the Israeli decision to cut back on construction of homes in the administered territories has created favorable political conditions here. But they warned that Bonn is hardly in a position to commit itself to major new financial obligations.

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