Bank of Israel general counsel Adv. Varda Lusthaus: This is one of the most important financial bills passed by the Knesset.
The Knesset last night passed in its second and the readings the Bank of Israel-sponsored repo bill for derivatives trading. Bank of Israel general counsel Adv. Varda Lusthaus told “Globes” in an exclusive interview that this was one of the most important financial bills passed by the Knesset lately. She said this was one of the few laws drafted with close input from banks.
Governor of the Bank of Israel Prof. Stanley Fischer, Acting Prime Minister and Minister of Finance Ehud Olmert, and Tel Aviv Stock Exchange (TASE) chiefs welcomed the legislation.
Lusthaus said the Bank of Israel initiated the repo amendment in order to lift legal barriers blocking repo deals on the market and by the Bank of Israel. Repo deals were blocked because it was unclear whether they were buy or sell transactions. To overcome these legal difficulties, the Bank of Israel recommended classifying repo deal as sell transactions.
The law passed yesterday solved the problem, and brought the Bank of Israel and other capital market players - commercial banks and financial institutions - on par with the rest of the world.
Published by Globes [online], Israel business news - www.globes.co.il - on March 2, 2006