Joint Statement: U.S.-Israel Joint Economic Development Group Joint
Statement
June 18, 2003
Following is the text of a joint U.S.-Israel statement released at the
conclusion of the Joint Economic Development Group meeting of June 18, 2003:
On June 18, delegations of the United States and Israel held useful,
in-depth discussions on Israel's economic reform plan. The
discussions, held in the context of the U.S.-Israel Joint Economic
Development Group, were co-chaired by Ambassador Alan Larson, Under
Secretary of State for Economic, Business, and Agricultural Affairs,
and Mr. Ohad Marani, Director General of the Israeli Ministry of
Finance. Israeli Finance Minister Benjamin Netanyahu made a
presentation to the JEDG on the recently enacted economic reform
program.
The U.S. and Israeli delegations noted that the future health of the
Israeli economy depends upon Israel undertaking fundamental economic
reforms and reducing Israeli budget deficits. The U.S. believes the
recently enacted Israeli economic reform plan represents a bold step
forward and delivers on undertakings made by the Israeli government.
We look forward to further discussions on how we can work together to
promote economic reform and long-term growth.
The United States and Israel had earlier agreed on the broad terms
under which the U.S. will issue $9 billion 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 U.S. 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 U.S.
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.