"Globes has obtained a copy of a letter sent to Bank of Israel governor Stanley Fischer by Akiva Mozes, chairman of the Israel Association of Public Companies and CEO of Israel Chemicals Ltd. (TASE: ICL) in which he proposes a solution to the non-banking credit crunch.
Mozes wrote, "If a solution is not found to the credit crunch, we will be stuck in a crisis far deeper than the one that confronts us. The credit crunch also hits good firms and the entire economy."
Mozes rejected the Bank of Israel's demand that the banks reach a capital adequacy of 12% by the end of the year. He wrote, "Postponing this by a year or two will help the banking system finance the business sector's activities."
In stressing that credit crunch problems affected good, quality companies Mozes wrote, "Business customers are almost unable to receive new credit lines from the Israeli banking system even when we are talking about financing a good deal."
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2009
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