Ma'an'The US has renewed a program of massive loan guarantees to Israel in spite of an ongoing dispute about the construction of illegal settlements in the West Bank.... the program allows Israel to sell bonds and take out loans with the backing of the US. The nine billion dollar program was originally approved in 2002 to help Israel cope with an economic downturn.
According to Israeli economist Shir Hever ...the loan guarantees are actually contradictory to the US’ diplomatic stance on settlements.
“The US is allowing its money to be used to violate international law,” Hever told Ma’an in a phone interview. “The US cannot claim to be an impartial arbiter,” because of its overall economic support for Israel.
Hever also said that the issue is much larger than loan guarantees... Israel is also the number one recipient of direct US aid, for example receiving three billion dollars per year in military aid, which it can use to buy weapons from Israeli companies, whereas other countries are required to buy from the US.
Because US guarantees make it possible for Israel to borrow money at lower interest rates, Israel’s government has prepared a budget whose size is “unparalleled in its history,” ...
“Israel has been able to get away with things no other country would,” Hever said, referring to Israel’s recent wars, which would have “driven any other country to bankruptcy.”... Full story
more info on U.S. aid to Israel
Posts
