2024-02-22 10:38:51
Ahead of the decision on the interest rate, Uriel Lin, the president of the Union of Chambers of Commerce, issued a statement in which he writes that the governor of the Bank of Israel must continue lowering the interest rate in the economy. Lin emphasized that the economic sector in Israel is in a state of emergency and that this is clearly reflected in the summary of the economic data of the last quarter in 2023 according to the announcement of the Central Bank: a 33% decrease in business activity and a 27% decrease in private consumption.
Uriel Lin: “Besides these figures, the economy faces high war expenses and reserve service of hundreds of thousands. Businesses in Israel are being hit hard. Some of the costs imposed on them originate from the high interest rate and the need to service the debts. Many businesses, households and mortgage payers are forced to turn to expensive sources of financing. A large part of businesses are already offering their businesses for sale: this is an increase of 162% in the months of December 2023 and January 2024. In this situation, it is necessary to continue to lower the price of credit and the burden of interest.”
According to Lin, “The Bank of Israel’s policy over the past year has violated the correct balance between the banking system and the business sector and households. Against the increase in the interest rate on loans, there was no reduction in the burden of bank fees. This situation requires correction. In this period when many businesses are forced to take credit in order to survive unusual transitional periods, the necessity is to continue lowering the cost of loans.’
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