www.bethelfinance.com
Bethel Finance news:
"We expect many debt settlements and haircuts. More than NIS 20 billion is classified as problem debt out of NIS 300 billion debt, compared with just NIS 4 billion six months ago," said Israel Securities Authority chairman Shmuel Hauser at the "Globes" Israel Business conference today. "This does not jeopardize the economy, but it could hurt investors."
Hauser said, "It's impossible to ignore the effect of the crisis on Israel. Coming generations will not be able to bear the burden of current generations. We're seeing possible isolvency by European countries and the possibility that the Eurozone will break up. The US Federal Reserve has presented a deep shock scenario for Europe, with a 50% haircut for countries in Europe's periphery.
"There is recognition that the risks to the financial system are liable to be exacerbated through the capital market. As for the Israeli capital market, there is concern that over-concentration in the economy is liable to worsen the infection. This requires all of us to prepare for what may yet come, even though Israel appears to be in good shape thanks to low unemployment and fiscal restraint."
Hauser called to keep the budget deficit as low as possible and to deal with Israel's conglomerates. "The financial sector's growing proportion of the total GDP requires special care because Israel's ten largest conglomerates constitute 40% of business product and are more heavily indebted than the rest."
No comments:
Post a Comment