There was a surprising growth of $ 385 million in foreign currency bank credit during the first half of May, a rise of 2.2%. This was revealed by bank data obtained by "Globes" today.
Since the beginning of April, according to the data, the business sector increased foreign currency credit by $ 760 million, a rise of 4.4%.
The growth in foreign currency bank credit since the beginning of April is contrary to estimates of loan repayments during the sharp shekel devaluation of 4% during April.
According to the data, the foreign currency credit balance has grown by $1.49 billion since the beginning of the year, reaching $18.14 billion by the first half of May, compared to $16.65 billion at the end of 1997, a rise of 9%. Since the beginning of 1997, the foreign currency credit balance has increased to $5.4 billion, a rise of 42%.
In addition, total free credit in banks since the beginning of the year was reported to have grown 6%. It reached NIS264.7 billion in the first half of May. During the past 12 months, total free credit at the banks increased by 15%. The expansion of free bank credit stems, among other things, from the growth posted in foreign currency credit.
Published by Israel's Business Arena May 14, 1998