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News and views on Israel, Zionism and the war on terrorism.

November 22, 2002

Israel Eyes Up to $10B in U.S. Aid

Can you spare some change?
JERUSALEM –– Israel will ask the United States for loan guarantees aimed at jump-strating its economy which has been damaged by two years of violence and the request will total between $8 billion and $10 billion, a senior government official said Thursday.

The official, who spoke on condition of anonymity, told The Associated Press that the Finance and Defense ministries are finalizing the request and would forward it to the United States in the coming days.

The request for guarantees on foreign bank loans would be in addition to the $2.9 million in direct loans and grants that Israel receives annually from the United States, the official said.

Israel, which receives the largest U.S. aid package of any country, relies on the loan guarantees to borrow at lower interest rates.

There is no cost to the United States if Israel repays the loans and Israel has never defaulted on a loan, the official said.
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