US extends loan guarantees until 2011

At Israel’s request, the US administration has extended the US loan guarantees by three years until 2011. This was the second time that Israel requested to extend the loan guarantee program. The first extension was until 2008. Israel has still not yet used $4.6 billion of the $9 billion program, which began in 2003.

Extending the program will make it easier for the Israeli government to raise financing for the second Lebanese war on international markets. It will also preserve Israel’s A- external credit rating and make it possible for Israeli companies to raise capital on international markets at fairly low interest rates.

Published by Globes [online], Israel business news - www.globes.co.il - on August 20, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006