The Knesset Finance Committee today approved another NIS 150 million transfer to Israel Military Industries Ltd. (IMI), after a five-minute debate.
The Ministry of Finance grant comes on top of NIS 150 million that the Ministry of Defense will transfer to IMI. This is the fourth government loan to the company. The three previous loans totaled NIS 90 million, NIS 70 million, and NIS 52 million; the company has received NIS 500 million in loans altogether.
"There are several problems, such as writing agreements with all the parties, including an agreement between the Ministry of Finance and Histadrut (General Federation of Labor in Israel). At least three months are needed to settle the details for completing privatization. It's hard to close and privatize a company with a huge shareholders' equity deficit of more than NIS 3 billion," said MK Shai Hermesh (Kadima). He added, "The intention is to finish this matter by Passover; in other words, the agreements with the employees and the privatization agreement will be signed."
IMI committee chairwoman Nitza Posner said, "The Finance Committee has succeeded in doing what no one else has, including the ministries of defense and finance - putting the privatization of IMI at the top of the agenda and solving the problem."
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2012
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