The financing for the loans in the problematic loans scandal at Menorah Mivtachim Holdings Ltd. (TASE: MORA) originally came from policyholders' money managed by the company, insurance market sources believe. When problems emerged with the loans and in chances of repayment, the company bought the loan portfolios at full price, including interest, so that the financial damage would not fall on the policyholders, but on the company's nostro portfolio.
When the scandal first broke, Menorah said that the financial damage from the problem loans and from another scandal of retroactive investment decisions in Top Finance policies, was assumed in full by the company, and that its customers would not be affected.
Earlier this week, Supervisor of Capital Markets, Insurance and Savings Yadin Antebi said that the Ministry of Finance would check whether Menorah's customers were affected by the two affairs.
Menorah Mivtachim's share was unchanged at NIS 40.65 today.
Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2009
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