President Shimon Peres today presided over the launch by Bank Leumi (TASE: LUMI) and the Koret Foundation's Koret Israel Economic Development Funds (KIEDF) of their NIS 600 million fund for the development of the Negev and Gilboa regions. The seven-year program aims to help the development of small and mid-sized businesses in the south and in the Gilboa region in the north.
The US government's Overseas Private Investment Corporation will provide a $10 million secondary guarantee for the program. The Koret Foundation and the Portland Trustare providing the funding.
The program will extend loans of NIS 50,000 to NIS 1.2 million. The loans will bear Prime + 1.5% interest, lower than the usual interest rate for business transactions. The equity threshold for eligible businesses is less than the level required for regular credit.
Bank Leumi chairman Eitan Raff said, "This loan program with the Koret Foundation is partly based on our concept of corporate responsibility for combining the bank's social principles with its business strategy."
Peres hosted the launch ceremony at the President's Residence in Jerusalem. Raff, Bank Leumi president and CEO Galia Maor, Koret Foundation Israel chairwoman Inbal Giladi, and Portland Trust chairman Sir Ronald Cohen attended.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2010
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