Seeking to allay fears sparked by Israeli news reports, Finance Minister Avraham Shohat has assured delegates to a State of Israel Bonds conference here that the government has no intention of dismantling the Bonds Organization.
On Tuesday, Shohat told the Israel Bonds Prime Minister’s Conference that he values the contribution that Israel Bonds Organization makes to Israel’s economy.
But, he stresed, there is a need to change the terms by which the organization raises funds.
He said change is necessary because after Israel receives promised American loan guarantees it will be able to raise money for development purposes under better terms.
Shohat confirmed that Israel would borrow $2 billion this year, thanks to the American guarantees. The first billion will be borrowed in March and the second billion in September.
Shohat will pay an official visit to the United States in March, using the opportunity to meet with the economic policy-makers in the Clinton administration.
Foreign Minister Shimon Peres, also addressing the delegates, said that the Israel Bonds Organization remains “an important tool in the development of Israel.”
Peres told the delegates that if Israel fails to answer its economic challenges, it will not be able to go ahead with the peace process.
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