The International Monetary Fund (IMF) which makes loans to debtor nations has reportedly expressed alarm over the state of Israel’s economy. An IMF mission that visited the country recently is expected to publish a report that will note a rising rate of inflation, an increase in private consumption and a decline of savings. The report is expected to predict that if government expenditures and the general wage level are not reduced. Israel’s economy will worsen.
The Bank of Israel and Treasury officials promised the IMF mission that the necessary policies would be implemented by the new government to be elected May 17. The mission complimented the government for the success of its creeping devaluation program and the restraining monetary measures taken by the Bank of Israel. But no agreement was reached on exactly what economic programs should be adopted. Israel is anxious for a favorable report by the IMF because of its dependence on the Fund’s loans.
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