It had become clear that the kibbutzim did not have the
means to transfer the funds. Internal structural changes
made in Complementary Arrangement
Minister of Finance Avraham Shohat announced to the
Knesset Finance Committee that he had waived a demand for
repayment of unpaid mutual aid from the kibbutzim in the
first Arrangement valued at NIS 740 million. It had
become clear to the Ministry of Finance that there was no
real chance for recovery of the sum.
Shohat stated that the United Kibbutz Movement (UKM),
which made a commitment to NIS 343 million in the first
Arrangement, had raised at most NIS 25 million. Kibbutz
Ha'artzi, which made a commitment to the sum of NIS 421
million, did not raise a penny. "It was therefore
decided to waive the demand for mutual assistance",
Shohat said.
Despite internal changes in the budgetary structure,
Shohat did not request to change the overall budget of
the government's participation in financing the
Complementary Agreement at NIS 3.3 billion (at June 1995
prices), as approved by the Finance committee in
September `95.