ECONOMIC SURVEY
(Communicated by GPO Economics Desk)
September 16, 1996
GOVERNMENT SECTOR:
* ISRAEL SIGNS AGREEMENT WITH UNDERWRITERS FOR RAISING $750 MILLION IN
EUROPEAN MONEY MARKETS.
On 10.09.96, Israel signed agreements with seven European underwriters,
led by Merrill Lynch International, to raise $750 million on the European
capital markets over the next three years. The offerings will take place
within the Euro Medium Term Note Programme. The first tranche of $200-250
million in Eurobonds is expected to be offered in early November,
according to Merrill Lynch International. Israel will be going to the
European markets in order to diversify its ability to raise funds on
international markets and to increase its base of investors, according to
Accountant- General Shai Talmon. Finance Minister Dan Meridor said that
Israel is selling its economy, and the important thing is that people are
buying it. "All signs indicate that what we sell, will be bought," Meridor
said.
Finance Ministry - Eli Yosef, 972-2-317201
PRIVATE SECTOR:
* KOOR TO LEAD ISRAELI BUSINESS DELEGATION TO VISIT PALESTINIAN AUTHORITY.
Koor CEO Benny Gaon will lead an Israeli executive business delegation to
visit Palestinian Authority Chairman Yasser Arafat on Wednesday, 18.09.96,
in Gaza. The delegation will include the Chairmen of Bank Leumi, Bank
Hapoalim, Mizrahi Bank, and Delta Galil Textiles, the Managing Director of
First International Bank, and the CEO's of Nahariya Dairy Strauss, Dankner
Investments, Mashav, and Arkia Israel Airlines.
Koor Industries - Hanna Yonnai, 972-3-5251115
* ISCAR TO RECEIVE 1995 EXPORT PRIZE; EFRAT FUTURE TECHNOLOGIES TO RECEIVE
SPECIAL EXPORT PRIZE.
Iscar, the machine tools producer from Tefen owned by Stef Wertheimer,
will be awarded the 1995 Export Prize by President Weizman on 18.09.96.
Efrat Future Technologies, the telecommunications producer from Tel Aviv,
will be awarded a Special Export Prize, while twelve other exporters
chosen by the Ministry of Industry and Trade will receive prizes from
the President. The other exporters receiving awards are: Orbot
Instruments, Golan Plastic Products, Camel Grinding Wheel Works, Daloumi
Asher Diamontaires, Negev Yarns, Chemada Nir Yitzhak-Sufa (chemicals),
Netafim Irrigation Equipment, ZAG (plastics), Rokonet Electronics, Tadiran
Electrical Appliances, Laser Industries, and Tefron (undergarments).
Industry and Trade Ministry - Haya Peri, 972-2-220340
* INCREASE OF 30% IN NUMBER OF RESTAURANTS AND CAFES IN 1992-95.
The number of restaurants and cafes established since the beginning of
1992 to the end of 1995 rose by 30%, according to statistics collected
from Business Data, a private business data firm. At the end of 1995, the
restaurant sector had sales of approximately NIS 4 billion, while in 1992,
the figure was NIS 2.6 billion. (Ha'aretz, 09.09.96, p.C5)
* IBM PURCHASED $93 MILLION FROM ISRAELI FIRMS IN 1995.
International Business Machines (IBM) purchased $93 million of goods and
services from Israeli firms during 1995, as part of its buy-back agreement
with the Israeli government, the Industrial Cooperation Authority of the
Industry and Trade Ministry announced. IBM either purchased goods and
services or invested in 35 Israeli firms during 1995, the authority
reported. On 10.09.96, representatives of IBM signed a new multi-year
agreement with the authority as part of its buy-back program.
Industry and Trade Ministry - Haya Peri, 972-2-220340
TOURISM SECTOR:
* TOURISM MINISTER KATZAV VISITS JORDAN.
Tourism Minister Moshe Katzav visited Jordan on 10.9.96 in order to review
cooperation in the tourism field with the Hashemite Kingdom. During his
visit, Katzav met with Crown Prince Hassan, and Jordan's Prime Minister
Kabariti. Acknowledging the presence of bureaucratic delays in other
economic areas, Kabariti told Katzav that tourism was the only field of
cooperation between the two countries that was progressing at a suitable
pace. Katzav asked the Jordanians to open the Allenby Bridge to Israeli
and Jordanian traffic, to which the Crown Prince responded that he will
bring it up for discussion.
Tourism Ministry - Michal Marmary, 972-2-6754845
* DROP IN TOURIST ARRIVALS CONTINUES IN JULY.
A 22% drop in tourist arrivals to 171,300, was recorded during July 1996,
as compared to 209,600 arrivals in July 1995, the Central Bureau of
Statistics reported. During the period from March to July 1996 (adjusted
for seasonal differences), the number of tourist arrivals by air was down
by 21% when compared to January-February 1996, and by 12%, as compared to
November-December 1995.
Central Bureau of Statistics - David Neumann, 972-2-6553400
MACRO-ECONOMIC SECTOR:
* BALANCE OF TRADE DEFICIT OF $7.47 BILLION SINCE BEGINNING OF YEAR.
Israel's balance of trade deficit widened to $7.47 billion at the end of
August, from the beginning of 1996, the Central Bureau of Statistics
reported. August's balance of trade deficit was $1.05 billion, with
exports of $1.29 billion compared to imports of $2.34 billion. Since March
1996, imports (excluding diamonds, fuel, ships, and planes) have fallen by
a monthly rate of 0.6%, as compared to monthly increases of 1-1.6% since
the middle of 1995. Since March 1996, exports have remained stable,
following monthly increases of approximately 1% from the fourth quarter of
1995 and the beginning of 1996. Israel's total exports for the first eight
months of 1996 was $12.28 billion compared to total imports of $19.76
billion.
Central Bureau of Statistics - David Neumann, 972-2-6553400