A $27, 500, 000 loan was voted to Israel this weekend by the International Bank for Reconstruction and Development. At the same time, the Export-Import Bank announced an agreement to lend $8, 900, 000 to El Al Israel Airlines.
The World Bank loan is earmarked specifically to help Israel build and equip a sheltered, deep-water port at Ashdod, on the Mediterranean Sea. When the new port development is completed, by 1965, Ashdod will be able to handle 900, 000 tons of cargo annually.
The loan by the Export-Import Bank, which is an agency of the United States Government, is intended to help El Al purchase two new Boeing jet airliners, each ship with a capacity of 131 passenger.
The World Bank loan for the Ashdod project is for 25 years, and bears interest at the rate of five and three-fourths percent a year, including one percent commission allocated to the bank’s special reserve. Amortization will begin in August, 1965. Israel will arrange to set aside from the new port’s revenues enough funds to cover service of the loan. The total cost of developing the new port will amount, according to the bank, to $54, 700, 000.
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