Israel Concludes $52 Million Credit Agreement with U.S. for Surplus Food

Deputy Finance Minister Zebi Dinstein told the Knesset today that Israel’s foreign trade deficit would total $1.460 billion by the end of this year and that the country’s foreign debt would reach the unprecedented amount of $1125 per capita. He said that due mainly to recent American loans Israel was able to maintain its foreign currency reserves. Dinstein disclosed that in the last few days Israel has concluded a $52 million credit agreement with the U.S. for the purchase of surplus foods and was expecting approval of a new $35 million loan from the American Export-Import Bank. These monies are apart from the $500 million credit extended to Israel by the U.S. last year for military purchases. Dinstein said Treasury experts forecast a slowdown in the growth of Israel’s imports this year because of reduced defense needs. He said imports increased by $340 million last year but are expected to rise by only $30 million this year. He said the government might consider raising the price of fuel 20 percent in order to reduce consumption and further reduce imports. He said more than a score or millions of dollars were saved by concluding long range contracts for the transportation of oil by sea. Dinstein said the Eilat-Ashkelon oil pipeline was already yielding considerable income in foreign currency and was turning Israel into a “not insignificant factor” in the world’s oil business.