Banking sources estimate that businessman Eliezer Fishman lost NIS 1.2 billion from last week’s fall in the Turkish lira. The Turkish lira has depreciated 15% against the dollar since the beginning of May. The banks are nonetheless calm about Fishman’s ability to repay the losses.
A study by a large bank estimates that Fishman’s losses amount to about 15% of his assets in Israel (not his foreign assets).
Sources said that, at the demands of the banks, Fishman increased his margin money on positions on the Turkish lira on Friday. A senior banker told “Globes”, “We’ve received all the margin we need.”
Banks’ spokespersons declined to comment about the figures, citing bank-customer confidentiality.
Since the beginning of last week, all the banks have been in contact with the Bank of Israel, regularly updating Supervisor of Banks Yoav Lehman on the measures they have undertaken. The banks separately notified the Bank of Israel that Fishman’s losses would not affect their stability. The Bank of Israel has declined to comment on the matter.
Fishman bet on the Turkish lira at all Israeli banks, except for First International Bank of Israel (TASE: FTIN1;FTIN5). Bank Hapoalim (LSE: BKHD; TASE: POLI) is most exposed (NIS 600 million), followed by Israel Discount Bank (TASE: DSCT) (NIS 300 million), Bank Leumi (TASE: LUMI) (NIS 150 million), Mizrahi Tefahot Bank (TASE:MZTF) (NIS 100 million), and Union Bank of Israel (TASE: UNON) (NIS 50 million).
“I’m not worried,” said a banker at a large bank. “Fishman has a proven record as a man who meets his obligations. He has repaid every penny in the past. He doesn’t disappear or run off.”
Sources add that negotiations between Fishman Holdings and Delek Group Ltd. (TASE: DLEKG), controlled by chairman Yitzak Tshuva, for the sale of stakes in Israel Credit Card CAL Ltd. and Ten Fuel Corp. Ltd., have greatly reassured the banks. The value of the holdings is estimated at NIS 500 million. Capital market sources believe that Fishman Holding subsidiary Jerusalem Economic Corp. (TASE:ECJM) (JEC) will also distribute a large dividend.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on May 28, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006