A joint US-Israel statement released at the conclusion of a Joint Economic Development Group meeting, June 18, 2003, noted that that “The future health of the Israeli economy depends upon Israel undertaking fundamental economic reforms and reducing Israeli budget deficits.”
“The US believes the recently enacted Israeli economic reform plan represents a bold step forward and delivers on undertakings made by the Israeli government.” The United States and Israel had earlier agreed on the broad terms under which the US will issue nine billion dollars in bond guarantees. These bond guarantees, to be issued once the formal loan guarantee agreement is finalized and signed by the parties, were authorized by legislation signed by President Bush on April 16, 2003.
“It is anticipated that, subject to the conclusion of the formal loan guarantee agreement, the first tranche of these loan guarantees can be made available. These guarantees are designed to promote sustained economic growth in Israel, will therefore be linked to successful implementation of elements of Israel's own ambitious economic reform plan, and can make a contribution to it.”
“The governments of Israel and the United States agreed that issuance of US guarantees will be tied to such pro-growth economic reforms, including deficit reduction, the accelerated tax rate reduction, and privatization, to be implemented by the Israeli government. The US and Israel agreed to continue to review progress on economic policy reforms and deficit reduction goals through regular meetings of the Joint Economic Development Group.” — (menareport.com)
© 2003 Mena Report (www.menareport.com)
