(Web posted Friday January 7, 08:40) Prime Minister Ehud Barak informed Minister of
Finance Avraham Shochat of the appointment from Sheperdstown Virginia. The Likud's Silvan Shalom called on Shochat to resign after Klein was appointed despite his objections.
(Web posted Friday January 7, 08:40) Prime Minister Ehud Barak has appointed senior Bank of Israel figure Dr. David Klein as governor of the bank, to replace outgoing governor Professor Yaakov Frenkel. Klein is regarded as one of the architects of Israel’s restrictive monetary policy of recent years. The appointment is subject to approval by the cabinet.
The appointment has aroused controversy within the government. Meretz minister Haim Oron voiced opposition to the appointment of a governor likely, he said, to continue the policy that, according to him, was resposnible for the economic slowdown from which Israel has suffered for the past three years. Oron predicted tension between the Bank of Israel and the Ministry of Finance, because of Minister of Finance Avraham Shochat’s known opposition to appointing Klein as governor. Opposition to the appointment was also expressed by the Shas party. The Likud’s Silvan Shalom asked whether Shochat should not resign.
Outgoing governor Professor Yaakov Frenkel welcomed David Klein’s appointment. He described Klein as a man of the utmost probity and trustworthiness who understood the Israeli economy, and said he expected him to be able to work together with the Minister of Finance.
Published by Israel’s Business Arena on January 7, 2000