ISRAELI GOVERNMENT SELLS $8 BILLION IN BONDS TO COVER FINANCIAL LOSSES

Thu 07 March 2024:

On Wednesday, 6 March, 2024, the Israeli Ministry of Finance held its first international dollar bond sale since the outbreak of the war on Gaza, raising a total of $8 billion, coinciding with the continued decline in financial incomes.

The Globes website, which specialises in the Israeli economy, quoted the Ministry of Finance as saying that the “demand for the offering reached $38 billion – 4.75 times the amount of the bonds being issued – and the highest ever for a State of Israeli international bond issue.”

Since the outbreak of the Occupation’s genocidal war on the Gaza Strip on 7 October, Israel has focused on collecting debts to finance the war in the local market, through local Israeli bonds.

Since the start of the war, Israel’s debt has grown and the amount of debt raised by the Ministry of Finance Accountant-General has jumped from NIS 1.5-2 billion (about $418 -$557 million) per week before the war, to NIS 3.5-4 billion (about $975 -$1.1 billion per week.)

Israel is expected to raise more than NIS 200 billion to meet the cost of the war. In the past, the Accountant-General has stressed that most of the debt would be raised by the state through the domestic market, but Bloomberg estimates that more than $10 billion will be raised worldwide.

The Ministry of Finance expects to collect more than NIS 200 billion ($55.5 billion) to cover the costs of the war.

The Israeli Public Accountant financing unit previously confirmed that most debts would be collected from local marks, but Bloomberg estimates that more than $10 billion will be collected from around the world.

On 10 February, the credit rating agency Moody’s announced that it had downgraded Israel’s foreign-currency and local-currency issuer ratings of Israel to A2 from A1.

-MEMO

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