Posted 4/1/2024, 9:14:30 AM
Israel's Financial System Resilient Despite Rising Debt Costs
- Israel's debt costs are rising, but financial system can absorb higher debt costs
- Banks are main source of loans during crises; regulators focus on those with money
- Israel's risk premium implies a BBB credit rating, even if agencies haven't downgraded
- VAT hike was preferred for budget due to ability to collect quickly, but may reexamine in 2025
- Haredi integration into workforce very important economically; could raise per capita GDP 6% by 2065
