Minister of Finance Bezalel Smotrich has announced the formation of a team to examine the consequences of the collapse of Silicon Valley Bank in the US for Israel’s technology industry, and to formulate recommendations for aid.
The team will be headed by Ministry of Finance director general Shlomi Heisler, and will comprise representatives of the Ministry of Finance, the Bank of Israel, the Israel Securities Authority, and the Israel Innovation Authority.
The Ministry of Finance announcement says that the team will be in touch with local technology companies and with venture capital firms and financial institutions in Israel and the US in order to obtain data and analysis of the possible effect on the Israeli economy, and will formulate solutions for the Israeli companies to the extent that these are required.
Shortly before the bank’s collapse, Smotrich held a meeting with representatives of Israeli technology companies to discuss the judicial system overhaul that the government is legislating. On that subject, there are deep differences of opinion between technology industry leaders, who see the legislation as endangering the industry, and the minister, who is one of the main advocates of reform of the judicial system.
"The collapse of the bank is a significant event for both the US and Israeli economies," Smotrich said. "We have promised to act to make the Israeli economy an island of stability and certainty in the stormy global economic waters, and with God’s help that is what we shall do. The State of Israel will stand with the local technology industry and will help it to overcome the crisis and continue its development and its business.
Published by Globes, Israel business news - en.globes.co.il - on March 12, 2023.
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