-Caveat Lector- http://news.bbc.co.uk/2/hi/business/2564981.stm
Wednesday, 11 December, 2002, 11:24 GMT IMF: Israel can cope without US aid The Palestinian uprising has cost Israel dearly Israel could cope with its worst recession in 50 years without US aid, the International Monetary Fund has said in its annual report on the country. "It is clear that the US aid will help, particularly in containing the fiscal deficit and stabilising the economy," IMF European Assistant Director Masahiko Takeda said. "But the Finance Ministry is ready to cope with the situation without counting on US aid," he added. Israel's economy has been battered by the global slowdown, hi-tech slump and a two-year Palestinian uprising that has scared off tourists, slashed revenues and sent defence costs soaring. "We see considerable risk that revenue (next year) will fall short of the budgeted amount," the report said. Israel is reportedly seeking $8bn (£5.1bn) in loan guarantees and $4bn in defence and other grants over 10 years from the US, the IMF's biggest shareholder. Cutting interest rates Israel is expected to overshoot its 3.9% budget deficit target substantially this year. Mr Takeda said the government should address the causes of the deficit rather than relying on US aid to plug the gap. In unusually direct advice to Israel's central bank, the Fund called on the Bank of Israel to use "every opportunity" to cut interest rates from 9.1%. It also criticised what appeared to be a politically inspired 2 percentage point rate cut last December, which it said led to a sharp depreciation of the shekel, a surge in inflation and a threat to financial stability. The IMF said it was confident the government was committed to pushing through the budget, due by 31 December, without compromising on spending cuts. Disagreements about funding for Jewish settlements in the West Bank and Gaza Strip led to the dissolution of Prime Minister Ariel Sharon's government in November. Elections are due to be held on 28 January. Key stories Israel's early elections Bombs and Labour Israel seeks US cash Hamas resurgent Profiles Ariel Sharon Binyamin Netanyahu Amram Mitzna Yasser Arafat FACTFILE Voices from the Conflict TALKING POINT How can Israel achieve security? AUDIO VIDEO TV and Radio reports See also: 11 Dec 02 | Business Business caught in the crossfire 25 Nov 02 | Business Israel asks US for more money 04 Nov 02 | Business Israel faces third year of recession Internet links: IMF Government of Israel The BBC is not responsible for the content of external internet sites Top Business stories now: Fiat names new chief Argentina in $1bn loan default US satellite TV giant shuts broadband Burger King sold for $1.5bn US shoppers in confident mood EU clinches expansion deal New Year cashback for rail investors Euro hits three-year high Links to more Business stories are at the foot of the page. E-mail this story to a friend <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
