Yossi Levy, CEO of Mor Investments (Photo Flash 90/ Yonatan Zindel)
Yossi Levy, CEO of Mor Investment House and one of the central figures in the local capital market, warns today in an interview with ice that without a compromise between the government and the opposition on the issue of legal reform, the capital market will collapse. “Right now the market embodies a kind of compromise. Maybe even up the road. But if there is no compromise, the local capital market will collapse.”
Regarding the interest rate increase, Levy says that “the market expected an interest rate increase of 0.5% because of the high inflation and also because the dollar strengthened. The strengthening of the dollar allowed the Bank of Israel to raise the interest rate without fearing that the dollar would be pushed down. I want you to remember, not long ago the Bank of Israel said that the maximum interest rate would be 4% and we are already at 4.25% and we estimate that there will be another interest rate increase of 0.25%.”
More in-
How do you see the legal revolution, how are the customers’ reactions?
“Israel is in a difficult situation. Every day money comes out of here and it pushes the dollar up. This allows the Bank of Israel to raise interest rates without fearing the exchange rate of the dollar against the shekel.” Levy says, “But I understand your question. As of today, the market expects that down the road the parties will reach some kind of compromise. And in case that doesn’t happen, the market will react sharply downward.”
“I’m talking about the entire capital market. Money simply came out of here quickly and in quick sales.”
Are the customers preparing to leave Israel?
“I want to speak carefully. I can say that investment houses have inquiries from clients all day asking how to open accounts abroad. How do you manage investments abroad and so on.”
How serious is the situation?
“I want you to understand,” says Levy, “every day there are inquiries from clients asking how to open cases abroad. There are now many representatives of foreign banks in Israel. There are countries and banks where it is very easy to open accounts and this crosses sectors and crosses investors. Even people who never thought about it are asking questions. Some have passed, some are passing and some will pass. We need to see in the coming days what happens and we will see an increase in this move. “One of the questions we are asked, and it came suddenly, is if there is a chance that the government will stop the transfer of money abroad. haven’t we arrived? Who would have thought that such questions would ever be asked. It shows panic and uncertainty and it results in money coming out of here every day.”
How much money are we talking about that goes into investment management abroad?
“We are talking about the order of magnitude of 100 million dollars a day. You have to understand us, but this does not characterize only us, but every investment house of a certain size has an investment management system abroad through foreign banks. It’s not that we stop managing the money, but the money goes from an Israeli bank to a foreign bank and there we continue to manage it for the client and naturally the investments are made through channels that are not in Israel.”
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