Israel's Strong Finances May Help Avoid Credit Downgrade Despite Economic Toll of Conflict with Hamas
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Israel's finances remain strong, which should help avoid a rating downgrade unless war with Hamas drags on.
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Cost to insure Israeli bonds has jumped to highest in 10 years, now more expensive than some lower-rated countries.
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Conflict brings economic costs like higher spending, lower taxes, bigger deficit, but fiscal cushion provides breathing room.
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Central bank pledged to sell $30B reserves to support currency, offer $15B in swap mechanisms to stabilize markets.
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Economic toll estimated at minimum $6.8B, but low debt-to-GDP ratio around 60% offers flexibility on spending.