Finance Minister Yair Lapid and Economy Minister Naftali Bennett Agree on an aid package for exporters aimed at strengthening the export sector
(Communicated by the Ministry of Finance) Minister of Finance Yair Lapid and Minister of the Economy Naftali Bennett are working to strengthen the Israeli export sector in order to boost exports and encourage economic growth. The ministers have initiated a joint plan of the Finance and Economy ministries consisting of several steps, including: helping exporters cope with risks and market failures; assisting exporters in financing overseas marketing investments, expanding export markets, and creating growth-equity sources and tools for mid-level companies. Helping exporters cope with risks and market failures: • The cap on foreign trade guarantees provided by the state will be increased significantly to NIS 13.3 billion from the current NIS 7.5 billion. • State guarantees will be raised, as a percentage of GDP, to the OECD average (an increase of 70% over three years). • Immediate approval for commercial risk insurance on deals will be given by ASHRA (the Israel Foreign Trade Risks Insurance Corporation). • Immediate steps will be taken to make assistance available to small and medium-sized exporters. • State guarantees will be provided for medium-term foreign trade insurance. Assisting exporters in financing overseas marketing investments ("Smart Money Plan") The ministries will assist companies actively in increasing exports to target markets. The plan calls, among other things, for the participation of up to 100 companies, as well as the achievement of 50% growth in exports by at least half of the participating companies. The cost of the plan has been set at NIS 50 million.