REUTERS - JERUSALEM, July 9
Israel and China are expanding
by $500 million a protocol that helps to finance Israeli exports
to China.
The agreement, signed on Thursday, increases the financing
available to $2.6 billion. It comes amid growing business ties
between the two countries, as the Israeli government encourages
companies to export to the East.
China, Israel's second-largest trading partner by dollar
value, is also looking at an expansion in bilateral trade, which
reached nearly $9 billion last year.
The agreement "indicates the success of the protocol in
opening the Chinese market to Israeli companies," said Israeli
Accountant-General Michal Abadi-Boiangiu.
Through the arrangement, Israeli banks offer long-term
credit to Chinese importers who purchase equipment from Israeli
exporters, transactions that are then guaranteed by the Israeli
government. The insurance allows Israeli exporters to
successfully compete in the global market, the Finance Ministry
said.
"The policy of using state guarantees to support growth-
generating targets is reflected in the expansion of the
protocol, which will lead to the increase in the Israeli
exports, thus benefiting employment, GDP, and tax revenues,"
Abadi-Boiangiu said.
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