Monday, September 20th | 14 Tishri 5782

Subscribe
March 18, 2020 9:06 am
0

Businesses Urge Bank of Israel to Buy Corporate Bonds, Stocks

avatar by Reuters and Algemeiner Staff

An Israeli flag flutters outside the Bank of Israel building in Jerusalem, Aug. 7, 2013. Photo: Reuters / Ronen Zvulun / File.

The Israeli Association of Public Traded Companies called on the central bank to be the “responsible adult” and starting buying corporate bonds and shares to alleviate a liquidity crisis stemming from the coronavirus outbreak.

Ilan Flato, chief executive of the organization, said this is one of the worst crises ever in the global economy and Israel’s government is not doing enough to steady capital markets and address liquidity problems. This could lead to the collapse of dozens or hundreds of companies, he said.

“The Bank of Israel must be the responsible adult and start intervening in the corporate bond and stock markets,” said Flato, whose organization represents hundreds of public firms in Israel.

“The Bank of Israel buys foreign stocks and bonds every month and it’s time to step in … and also support purchases in the local market,” he added.

Related coverage

September 19, 2021 6:22 pm

Commander From Elite Israeli Border Police Unit Describes Capture of Last Two Escaped Palestinian Terrorists

A commander from an elite Israel Border Police unit described to Israeli media on Sunday the capture of the last...

The central bank declined to say whether it would start buying corporate bonds or shares but said it “has taken and will continue to use its policy tools to further support the Israeli economy at this time”.

Earlier this week, the central bank began buying government bonds and added liquidity in the foreign exchange market through dollar-shekel swap transactions.

Share this Story: Share On Facebook Share On Twitter

Let your voice be heard!

Join the Algemeiner

Algemeiner.com

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.