Treasury: Israel's exposure to Wall St tempest "insignificant"

"The Israeli economy's situation, at the onset of a global financial crisis, is stable."

With the financial crisis in the US poised to enter a new phase, economy leaders in Israel are making a concerted effort to ease concerns in Israel over the crisis abroad.

The Ministry of Finance is closely following the latest developments on global markets and in the US in particular. A Finance Ministry source told "Globes" "The Israeli economy's situation, at the onset of the global financial crisis, is stable. Unemployment is now at 5.9%, the lowest it has been for more than 20 years, and at 71.2%, the employment rate today is one of the highest in the country's history. The Israeli economy grew by 5.3% in the first half of 2008, after four consecutive years of annualized growth of 5%."

The sources added, "The financial crisis will affect the Israeli economy, and we expect growth in the coming quarters to be more moderate than what we have seen in recent years. However, as things stand at present, the direct exposure to the crisis of institutions regulated by the Ministry of Finance is insignificant."

A spokesperson for the Bank of Israel said, "As part of our responsibility, we are continuing to maintain ongoing contacts with the banking industry and all relevant authorities. We are closely following developments and stand ready to take whatever measures may be necessary."

Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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