Israel lends $ 76 billion to finance the war

Last year, Israel collected records to finance its multiple war against ‘Hamas’ and other military supported by Iran. The Finance Ministry said today, Monday, that the government borrowed $ 278.4 billion ($ 75.9 billion), which is more than the previous record of 265 billion shekels registered in 2020 during the “Kofid” pandemic. Most loans, about 81%, were implemented by the local bond market in Israel. In international markets, Israel issued its largest $ 8 billion value in March. Other sales were also done abroad by special transactions and the company “Israel bonds”, a government business in the United States that tackles sales of similar bonds. Most of the special transactions in the Brazilian Riyal, which are popular with investors in Latin America, are concentrated due to a tax -release treaty between Israel and Brazil. The Israeli budget deficit of 2024 reached about 6.9% of GDP, higher than the original 6.6% target set by the government, but it is less than the 7.7% ceiling approved by the Israeli Parliament in December. The budget last year was changed three times as the war was expanded to Lebanon, and direct strikes between Israel and Iran took place. According to the Bank or Israel, the total war bill is expected to amount to approximately $ 250 billion ($ 68 billion). The blame is pressure on Israeli returns, the release of intense effects last year led to the pressure on the returns of Israeli bonds, but investors’ demand remained strong. The differences in the income of ties and the disagreement of the backwardness have seen a significant decline since November, a time when Israel and the Lebanese “Hezbollah” agreed to a ceasefire. Premier Benjamin Netanyahu government has determined the target budget deficit for this year between 4.4% and 4.9%. Although this number is lower than last year, the fights in Gaza continue. There are currently a ceasefire talks with Hamas, while Israel is still repelling missile attacks and regular drones of the Houthis in Yemen. Yali Rottenberg, the general accountant of Israel and responsible for the management of the country’s debt, told reporters on Monday that the commitment to this goal is decisive to “send a correct message to investors and markets, and to maintain the sovereign credit rating of Israel.” The credit rating under the pressure of the current sovereign credit rating of Israel is ‘Baa1’ of Moody’s agency, ‘A’ of the ‘S&B Global’ and ‘Fitch’ agency, after it was reduced several times during the war. The three agencies place Israel under a negative future appearance. Israel is expected to increase about 160 billion shekels ($ 43.5 billion) in local and foreign exchange this year, according to Lianv Bagot, vice president of trading on the Tel Aviv Stock Exchange. Ministry of Finance officials also said that sales of bonds for the next year are likely to be less than last year to reduce the financial deficit. The government does not distribute annual financing goals. Ministry officials recently started preparing for a new international agreement that could be concluded during the current term.