Loans: Banks deferred NIS 150 billion

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The banks have postponed the repayment of half a million loans, totaling NIS 150 billion, according to specifications provided yesterday by the CEO of the Association of Banks Eitan Madmon in the State Audit Committee. It is already clear that not all loans will be repaid, and therefore banks are expected to significantly increase For problem debts in reports for the second quarter to be published at the end of the month.

“Banks are a reflection of the economy, and if it collapses, we will have a similar result,” Madmon told the committee. “We need to produce processes that will provide solutions to business problems. There are imperfect things, but any business that falls is also damage to us.”

Most of the problems with loan repayments can arise from young couples who have taken out a mortgage and found themselves without a job. A report by the Bank of Israel’s Research Department published last week argued that the continuing crisis in the economy could significantly increase insolvency. “The lending market must be revived on a government initiative,” said committee chairman MK Ofer Shelach. “We have heard that for the banks the policy has not changed and that the message sent to them is to take measured and calculated risks. As a result, many businesses are collapsing. A state guarantee will help.”

Shelach added that “there is an immediate need to put businesses at risk in the banks’ lending program as well and to add more players who will give non-bank credit. One thing is clear to us: this is going to be a slow exit, and we need to make sure businesses get back to work as soon as possible.”

Credit union chairman Micha Avni argued against the banks that they “pull the blanket off people who need the money, and give it to people who can repay anyway. The banks took credit from wealthy customers and converted it into state-guaranteed loans. The Accountant General in the Treasury did not even bother to respond to our inquiries or respond to the letters we sent, so that we too can give state-guaranteed loans. ”

The Ministry of Finance rejected the allegations, claiming that they were also interested in introducing institutional bodies for the provision of state-guaranteed loans. “We would like everything to work faster and clear the whole market of all those criminals who are in the field of finance and lending without any licensing, but that is not happening yet,” the Treasury said yesterday. “The goal is for non-bank players to be added to the credit market during the crisis.”

Simon Tannos, owner of a transportation company from the town of Marar in the Galilee, said that he was informed by the bank that they were closing his credit and that he was not entitled to receive loans until he met the payments. “Our industry ate it. We took out a loan of NIS 1 million for each bus and I lose NIS 150,000 for each bus,” he testified.
The president of the Manufacturers ‘Association, Ron Tomer, concluded: “The most difficult problem is in swinging businesses, which has put them in a difficult situation, and where the banks’ hand is clenched. Even in high-risk funds, banks are very careful.

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