News: Israel Doesn't Expect US Limit on Loan Guarantees

Israel does not expect the United States to limit use of loan guarantees despite a dispute with Washington over building in East Jerusalem and in West Bank settlements, Finance Minister Yuval Steinitz said on Thursday.

Last month, the U.S. re-approved Israel's loan guarantee program, subject to Israel meeting fiscal targets. It came despite the rift between Israel and its main ally over Israel's rejection of U.S. demands to halt settlement building.

In 2002, to help Israel deal with a recession caused by a global downturn and a wave of Palestinian suicide bombings, the U.S. provided a package of $9 billion in loan guarantees, where Israel could sell bonds internationally with the backing of the United States.

The guarantees have been instrumental in allowing Israel to raise money more cheaply and in sovereign ratings upgrades by credit rating agencies. Israel still has $3.8 billion left to use by 2011 after already issuing $4.1 billion in bonds backed by the U.S. and a $1.1 billion deduction for Israeli settlement building and concerns over the West Bank security fence.

The finance minister noted that prior disputes over settlement building have led the U.S. to deduct rather than cancel the guarantees.

HEADLINES

PNA denies asking Israel to resume peace talks (Xinhua)

Haneya: Hamas ready to quit power for reconciliation (Xinhua)

Egypt: Political in-fighting will prevent Palestinian unity (Palestine News Network)

Israel aborts test of missile defense system in U.S. (Ha'aretz)

Palestine and the Palestinians

Hamas leader accuses Fatah of obstructing unity talks (Xinhua)

'Erekat wanted Mottaki's help on Hamas' (Jerusalem Post)

A Palestinian Technocrat Rises Steadily, but Questions Persist (Washington Post)

Palestinian: Border Guard officers beat me up (Ynet)

Palestinian sentenced to 15-year sentence for joining al-Qaeda (Ynet)

Palestinian arrested after testifying in Geneva (Ynet)

Illegal Palestinian worker arrested for trying to steal tractor (Jerusalem Post)

Israel

Leftist Israeli intellectuals demand new Gaza war probe (Ha'aretz)

Jewish groups entering Al-Aqsa Mosque increase tensions between Palestinians & Israelis (Palestine News Network)

Activists say Israel gave key site to settlers (AFP)

Israel to close down all three Gaza crossings Friday (Ma'an)

Jewish Settlements Squeeze Bedouin Enclave (NPR)

Israeli press uncertain over potential crisis in US relationship (Ma'an)

The Neighbors

Turkey, Syria Push Israel on Occupied Lands (Xinhua)

Egypt says al-Qadoumi's accusations harm Palestinian reconciliation (Xinhua)

Tensions mounting between Jordan's Hashemites, Palestinian majority (World Tribune)

Arab States Ban Young, Old and Sick From Hajj (New York Times)

Turkish leader presses Israel to return Golan (AP)

US Foreign Policy

Clinton Speaks of Shielding Mideast From Iran (New York Times)

US pessimistic on Iran overtures (BBC)

Iraq and US vow renewed alliance (BBC)

International Relations/Law

UN chief urges Israelis, Palestinians to push forward Middle East peace process(Xinhua)

Slovakia temporarily takes in Palestinian refugees: UNHCR (AFP)

No charge for Srour; bail, "conditions" following UN testimony (Ma'an)

Bin Laden son 'believed killed' (BBC)

Israel sees Brazil help with Iran (BBC)

Arts and Activism

Is this Led Zeppelin? No, it's Zahra al Fassia (Ha'aretz)

Music festival in Jerusalem aims to break isolation and preserve Palestinian cultural identity (Palestine News Network)

Misc.

Imposing malnutrition on Gaza (Electronic Intifada)

Commentary

Why Sharia Law Might Be Israel's Path to Peace (Foreign Policy)

Cooperation in the ether (The Economist)

Cook: The reality of Israel's "open" Jerusalem (Counterpunch)

Hijab: Israeli warships in the Red Sea (Counterpunch)

The world has finally spoken, awaits Israel's response (Daily Star)

Views expressed on this post or on linked web pages do not represent the Palestine Center, the educational program of the Jerusalem Fund for Education and Community Development. All content is for educational purposes only.

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