Leumi launches state-backed NIS 1b. business fund

April 4, 2016 19:53
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Bank Leumi on Monday announced the launch of a statebacked fund to provide about NIS 1 billion in annual loans to small and medium businesses.

“There is no doubt that the loans in the framework of the fund are a substantial addition to the basket of solutions and value prospects Leumi already offers for the benefit of small and medium businesses,” said Dan Cohen, the head of Leumi’s banking division.Leumi won a four-year Finance Ministry tender to run the fund, which aims at business that have NIS 100 million or less in annual turnover.

Cohen said the decision to broaden its SME portfolio was a “strategic” one for the bank.

The fund will offer several types of loans, linked to shekels or dollars, with payback times ranging from one to five years, and interest rates depending on the specifics of the business in question.

SMEs account for about 99% of the private sector in Israel, are responsible for 50% of its output, and employ about 45% of all Israeli workers. They often have difficulties getting access to credit, or can only get it on very unfavorable terms.

The government guarantee aims to reduce the risk profile for lending to such businesses.

The fund is, notably, available to construction companies, part of a Finance Ministry attempt to boost the housing supply.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
March 18, 2019
Turkey investigating if Utrecht attack was personal or terrorism