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On January 1, 2006, a new overdraft directive will be enacted, affecting hundreds of thousands of Israelis, who, on average, exceed their credit limit by NIS 1,500 per month.
On Wednesday, December 7, Supervisor of Banks Yoav Lehman announced that he would enable a six-month adaptation period. According to Bank of Israel, a decision to delay the de facto implementation of the law was reached after many requests were made on behalf of banks and their clients, arguing that they were not technically prepared for the change.
Under the new directive, banks will have to set a fixed credit facility that clients will only be able to exceed under very special conditions. According to the Bank of Israel, banks will have to set a credit frame for each client that suits his or her needs and ability to repay.
This may significantly change the way many people manage their finances. Unsure of how you'll be affected? Send us your questions and expert in the field Eli Mizroch, head of marketing and strategic planning at Bank Hapoalim, will answer your queries.