20 Oct 2021
DiamondWorld Directory
Home |
News
Home
Moti Ganz calls for increased support from Israel banks
Is unhappy at the reduced credit granted to the diamond sector
By: Diamond World News Service
|
Dec 18 2008 7:15PM
|
Reference: 3359  

DecreaseIncrease

Showing concern over credit matters for the Israel diamond industry, Israel Diamond Manufacturers Association (IsDMA) President Moti Ganz has approached the Bank of Israel to extend financial support to the country’s diamond industry, which is the largest export industry in Israel.

He wrote a letter to Prof. Stanley Fischer, Governor of the Bank of Israel, proposing that the Bank should establish a $2.25 billion credit fund for the diamond industry out of the central bank’s foreign exchange surplus. The credit would be made available to diamantaires through the banks financing the industry – Union Bank, Israel Discount Bank, Bank Leumi, First International Bank and Mizrahi Tefahot Bank. Also, diamantaires would continue to pay individualised margins according to the company’s level of risk, but would save the cost of raising the funds (LIBOR).

Ganz also noted that banks should reduce the burden of margins charged to diamantaires to the level of January 2008 – between 1 and 3 percent, since banks have raised margins unilaterally by 0.25 to 1 percent from the beginning of the financial crisis the. Stiff competition was leading to the industry allowing buyers a credit period of 120 to 160 days.

Ganz showed unhappiness towards the Israeli banks having seriously reduced the credit available to the industry, since the start of the financial crisis, the. “The Israeli diamond industry’s total debt to the banks is about $2.3 billion, a level it has maintained for several years despite an impressive growth in exports.” wrote Ganz. He added that the number of bankruptcies in the industry is minimal, not exceeding more than one or two a year. This, he stated, attests to the financial strength of the industry and its stability. The Israel diamond industry noted a polished exports in 2007 to the tune of over $7 billion (about 20 percent of the country’s total industrial exports), and with a net turnover of $20 billion.

Ganz concluded that the diamond industry was not a cause of the current economic crisis, yet is being forced to deal with its serious consequences daily. “We are the only industry in Israel that has not leveraged itself, has not issued bonds to the detriment of the economy,” he wrote.

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
*  Company:
 
*  Name:
 
*  Mobile:
 
*  Email:
 
 
Subscribe for DiamondWorld weekly Newsletter
 
Search News by City
Advertisement
Kosher 23460
Advertisement
Kosher 23460
Recent Issue
2021
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 30001
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 6386
GJEPC Chairman Interview
Views: 26285
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 36059
Promo for IJ Awards 2012 at NDTV Profit
Views: 50033
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 63280
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 20283
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 47958
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 47084
Member of:
Supporter of: