Press Release
January 7th, 2010
Bank Leumi and the Koret Foundation launched a NIS 600 million program for the economic development of the Negev and Gilboa at the President's residence.
Today, at the President's residence, The Keren Foundation (KIEDF) and Bank Leumi launched the program for the economic development of the Negev and Gilboa. During the next 7 years, this program will extend loans of up to approx. NIS 600 million for small and medium sized business developments. This program was initiated by the KIEDF in cooperation with OPIC – The American government's division for investments in the private sectors of foreign countries, OPIC will provide a second warranty of $10 million for the purpose of executing the program. Activation of this program was made possible by the financial aid granted by the US Friends of Koret and the Portland Trust Foundation.
This program will enable thousands of small and medium sized businesses in all activity sectors in the Negev and Gilboa regions to benefit from loans ranging from NIS 50,000 to NIS 1.2 million at an attractive interest rate of prime + 1.5%. The cooperation between the institutions enables businesses to benefit from the possibility of providing a lower equity capital than that required when receiving regular credit.
This program was launched today at a solemn ceremony at the Israel President's residence in the presence of the State President, Mr. Shimon Peres, Koret Foundation Chairperson, Eival Giladi, Chairperson of the Leumi Board of Directors, Eitan Raf, CEO of the Koret Foundation, Carl Kaplan, Leumi CEO Galia Maor, The US Ambassador in Israel, Mr. James Kingham, OPIC Vice President of Structured Finance, Robert Drumheller, Sir Ronald Cohen and other notables.
His Excellency the President of the State of Israel, Mr. Shimon Peres: "We are all partners in this superior goal with one impetus – To develop the Negev. Your joint project provides solutions for a series of issues, headed by reducing unemployment and poverty. Creating 8,000 jobs and factories provides the most expedient solution possible for these problems. As president of the country, I extend my blessings to all the partners for their contribution and efforts aimed at developing and strengthening the Negev."
Eival Giladi, Koret Foundation Chairperson: "The reference is to a program that will allocate an unprecedented volume of credit to the periphery. Allocating credit to this extent under such financing conditions for businesses in the Negev and Gilboa will generate significant change in these regions and provide much needed economic oxygen to many entrepreneurs and businesses. This program is expected to create jobs, increase the product and per capita income and reduce unemployment – all important steps along the path to improving economic conditions in the periphery."
The Koret Foundation commenced operations in Israel 16 years ago with small enterprises in the Negev, under the management of the CEO, Mr. Carl Kaplan. "We are now returning to the Negev in order to complete what we commenced a decade and a half ago. We warmly appreciate Bank Leumi and OPIC's readiness to join us in launching this unprecedented program for encouraging small and medium sized businesses."
Leumi Board chairperson, Mr. Eitan Raf stressed that Leumi perceives much importance in cooperation with the Koret Foundation aimed at business growth and development in the periphery. "We perceive this operation as a direct continuation of the aid that we provided by extending interest and commission free loans to the citizens of the south during the Cast Lead Campaign. Inter alia, the loans program with the Koret Foundation stems from accepting our corporative responsibility, in pursuance of which the Bank's social principles must be merged into its business strategy," Raf said.
About the Koret Foundation
The Koret Foundation activates a number of programs aimed at economic development and narrowing social gaps throughout Israel. Since its establishment, the Koret Foundation has extended credit exceeding NIS 900 million to approx. 8,000 businesses, while creating and supporting approx. 40 thousand jobs. The foundation launched special aid programs for the citizens of both the north during the Second Lebanese War and the Gaza border settlements during "Cast Lead."
The Portland Trust Foundation, a British organization, founded by Sir Ronald Cohen, and managed by Mr. Eival Giladi in Israel, assisted the Koret Foundation in launching the program for the citizens of the north during the Second Lebanese War. The Trust operates in promoting peace and regional stability via economic development and is now also supporting the Negev and Gilboa development program.
For further details, contact Dedi Ben Menachem, Scherf Communications at 052-7202708
