Prime Minister Benjamin Netanyahu clarified yesterday he does not believe Israel will be able to begin weaning itself off US economic aid in the next few years. Netanyahu clarified his statements in meetings held in Congress after it was understood from his speech before a joint session Republicans and Senators in Congress that the procedure would begin relatively quickly.
Netanyahu yesterday expressed his hope that it would be possible to begin the procedure while he still held office, but emphasised that the issue would not take one or two years.
Netanyahu met yesterday with chair of Federal Reserve Board Alan Greenspan. Governor of the Bank of Israel Ya’akov Frenkel also attended the meeting.
Concerning Netanyahu’s privatisation plans, Greenspan stressed the importance of creating a mechanism that would increase competitiveness in the economy. The Israeli side, as in previous meetings, presented an overview of the economy and the series of economic measures the government took at the beginning of last week.
“Prime Minister Benjamin Netanyahu’s declaration that Israel will discuss a gradual reduction in the US’s economic aid package was planned and co-ordinated with the Governor of the Bank of Israel Professor Ya’akov Frenkel,” said official sources in Jerusalem today.
Bank of Israel Management member Gidon Shor told Globes that the issue does not concern a waiver on the part of Israel or a drastic cutback in US economic aid over the next four years, meant to return debts on loans Israel took out at the end of the 70s and in the framework of the peace agreement with Egypt.
Shor: “The idea is for Israel to free itself completely from (its dependence on) American economic aid by the year 2000. It is important to stress that Congress is strongly opposed to foreign aid. This was a political decision, and it’s preferable that Israel on its own initiative gradually, over a 20 year period, reduces the volume of US economic aid it receives rather than wait for the US to take the step.”