The banks mounted the riots of Israel. Among other things: Cabinet approved a record call-up with reserved soldiers and preparing for a large Gaza Strip campaign; Inflation is shocking negative again and above the upper limit of its annual target (3%) contrary to most western economic economies; There is an increase in debt arrears; There is also a major uncertainty in the international arena due to Trump tariffs and the heavy US debt; And finally the National Economic Council Chairman Prof. Avi Simon accuses banks that cause housing prices.
In this case, the Bank of Israel has been able to see interest at any time before, two projects in the “governor of Israel that governor Prof. Amir Yaron Narsor.
In the last month, a record number of arrears of mortgage was recorded – NIS 3.6 billion. Are you worried?
“The delinquency rate has been raised a little more, but it is still considered small to any global standard,” Yaron explained. Now, it is 0.6% of all mortgages. According to Yaron, a possible explanation is the condition of calculation. “If you multiply this rate with the number of mortgages taken by Israel, with a course increase in constant, the number of delinquencies continues to have this issue in a way we do not see anything that is not surprising to this matter.”
The answer to Simon
Yaron also discussed restrictions imposed by the Bank of Israel in the last month of aggressive financing deals offered by developers and contractors. “The supervisor (in banks) prints a temporary order according to which restrictions will be imposed on the uprising of banks in apartments (fees of 20% now and 80% of completion).
You may have limited these operations, but on the ground you see that contractors have found techniques around it, such as subsid in debt. How do you intend to act this item?
“Our main goal is the first and first to intervene with this item. We lower the projects for plain years after going in the coming years.
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“On the other hand, some of the offers are not the same case as the story of these promotions. All with a process of caring for these promotions.
On the same subject, the team led by Prof. Avi Simon blames banks and you for housing price rise. Can there be something in these claims?
“First of all, I am not opposed to an examination, the bank has no problem to investigate the issue and the processes of healing that is concerned with the hike processes.
The team led by Simon also claims to have a competitive failure as a result of the banking system requirements.
“The mechanism for giving guarantee and financing construction can sound technical, but it is important for buyers at home.
The question of interest rates
Interview with the Bank of Israel that occurred after he spoke to Eli Hurvitz Economic Conference and Inflation Arrival 3.6% last month, due to support of support.
Because of the situation, do you still believe that you can cut interest twice in the coming year?
“We need to remember that we have a period of uncertainty. It’s not just about home events like events in these steps, because the odds of these steps are sometimes overcome.
Despite all, Yaron believes that without changes in geopolitical conditions, inflation will return to the target range and then the interest rate can be cut. The main message from his words is clear: The Bank of Israel continues to monitor, analyze, and respond.
Published in Globes, Israel News in News – en.globes.co.il – On May 27, 2025.
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