Minister of Finance Yuval Steinitz told “IDF Radio" (Galei Zahal) this morning that the sale of the government's shares in Israel Discount Bank (TASE: DSCT) would make it possible for the government to raise less capital on foreign markets. He reiterated that the government also plans to sell its 11% holding in Bank Leumi (TASE: LUMI).
Steinitz said, "The state does not need to own banks. We'll save NIS 200-300 million in interest payments a year, and that is direct money for the budget. In addition, we'll raise less capital overseas."
Steinitz added that the government would sell its stake in Bank Leumi this year, and that the start of the sale of the shares in Discount Bank demonstrated that the Ministry of Finance "is serious" about selling its bank holdings.
Steinitz also commented on yesterday's bombshell of Bank Leumi shareholder Shlomo Eliahu, who informed the bank's board that he wants to appoint former Governor of the Bank of Israel David Klein as Bank Leumi's next chairman. Steinitz said that the Ministry of Finance would not automatically approve the appointment. "We're examining the matter. The legal situation is a bit complicated. Dr. Klein is a highly thought-of man, but we have to examine the legal situation together with the Bank of Israel," he said.
Commenting on the fall in the shekel-dollar exchange rate to NIS 3.69/$ yesterday, Steinitz said, "I hope that the shekel-dollar exchange rate won't fall to NIS 3.50/$." He added that the shekel was strong because of Israel's good macroeconomic figures, but expressed hope that the US economic recovery would boost the dollar against other currencies, the shekel included. "We will see the dollar strengthening with the US economic recovery, along with the rest of the world," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2010
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