U.S. Export-import Bank Says New Loan Will Improve Israel’s Foreign Exchange Position

December 28, 1950

WASHINGTON (Dec. 27)

The Board of Governors of the Export-Import Bank today issued a statement declaring that the new $35,000,000 loan–“in addition to Israel’s investment of its own funds in the rehabilitation and expansion of citriculture”–should result in an improvement of Israel’s foreign exchange position by materially increasing its major export.

The Bank said that in the discussions which preceded the granting of the credit, Israel provided a general outline of its development and financing plans. The new credit will bear interest at the rate of three-and-one-half percent per annum and is to be amortized over a period of 15 years.

Oscar Gass, economic adviser to the Israel Embassy, said that Israel intends to start using the new Export-Import Bank credit at once. He indicated that the U.S. Treasury Department, Export-Import Bank, and high American officials are thoroughly in accord with Israel’s plan to offer bonds to the American people soon.