"By the end of the year more than 47,000 businesses will close," Industry, Trade and Labor Minister Binyamin Ben-Eliezer said Monday.
Speaking at an employment conference in Jerusalem, Ben-Eliezer presented worrying data collected by his ministry.
"The situation is bad. We are talking about some 10.5% of businesses in Israel... As a government we need to deal with the problem of credit being stifled," he said. "Unyielding support and stimulus funds do not answer the problem."
According to research carried out by the Industry, Trade and Labor Ministry, 85% of businesses facing closure were small independent businesses where usually a single person works.