Flug will not seek extension as Bank of Israel governor

Karnit Flug  photo: Rami Zarnegar

Karnit Flug has announced her intention of stepping down in November.

Governor of the Bank of Israel Karnit Flug will stand down on November 12, 2018, after five years in the post, as stipulated by the law, and will not seek a further term. Prime Minister Benjamin Netanyahu and Minister of Finance Moshe Kahlon have started looking for an agreed candidate to replace her. By law and convention, the prime minister and the minister of finance propose a candidate for approval by the government.

In a letter to Netanyahu notifying him of her decision, Flug stresses the need to preserve the independence and professionalism of the central bank in deciding on the appointment of the next governor, and hints to Netanyahu that if he allows the appointment process to become politicized, this will have consequences for Israel's credit rating and for global confidence in the Israeli economy.

So far, no-one has declared an intention to compete for the job of governor of the Bank of Israel, but the assessment in Jerusalem is that there are candidates who have been waiting to see whether Flug's term will be extended before announcing their candidacy.

In her letter to the prime minister, Flug writes, “I was privileged to head an organization of the highest quality, which works with professionalism, dedication, and loyalty, and that on a daily basis lives up to the vision it set for itself-to be among the most advanced central banks and to contribute to the prosperity of Israel and the welfare of its citizens. This is not the time for summing up, but I can already say that I will end my tenure with a feeling of great satisfaction, as the Bank of Israel has a marked role in the robust state and the stability displayed by Israel’s economy in recent years, as well as in the analysis and the promotion of discussion regarding the considerable challenges we will face in the coming years.” 

In a statement, Netanyahu thanked Flug for her dedicated service and expressed appreciation for her contribution to the Israeli economy.

Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Karnit Flug  photo: Rami Zarnegar
Karnit Flug photo: Rami Zarnegar
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