Knesset Finance Committee approved NIS 5 billion gov't guarantees to Exporters

Port2port News Service

 
The government will provide NIS 4 billion in guarantees to insure short-term export contracts of up to one year and
NIS 1 billion in guarantees for carrying out export contracts
 
Knesset Finance Committee approved last week a request made by Minister of Finance Yuval Steinitz to provide 
guarantees to finance export contracts and residential construction. 
 
The government will provide NIS 4 billion in guarantees to insure short-term export contracts of up to one year. The guarantees will be provided through Ashra Israel Export Insurance Corp. Ltd. and Clal Credit Insurance Ltd. According to the package the government will also provide an additional NIS 1 billion in guarantees for carrying out export contracts.
 
It was noted that the government request is first of its kind since normally foreign insurance companies provide reinsurance services to the Israeli credit insurance, but the deep economic crisis and consequent increased risk has caused credit reinsurers to greatly reduce their market activity thus limiting export deals due to the lack of insurance.
 
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