The U.S. and Israel signed an agreement this week to extend U.S. loan guarantees to Israel through 2016. The Jerusalem Post reported:
The agreement, signed on the sidelines of the US-Israel Joint Economic Development Group (JEDG) forum, gives Israel four more years to use $3.8 billion in guarantees left over from the $9b. in guarantees granted in 2003. The guarantees are conditional on Israel meeting deficit and expenditure targets and making economic reforms.
Even if Israel does not take advantage of the loan guarantees, having American backing helps it obtain favorable rates on borrowing abroad.
The guarantees come on top of more than $3b. in military assistance and joint US-Israel missile defense projects.
Finance Minister Yuval Steinitz said in a press statement that the agreement is ‘important evidence’ of the special economic relationship between the US and Israel.