Intifada resulted in decrease of Israeli investment by 60%

The central bank of Israel on Thursday admitted that the Palestinian Intifada resulted in the recession of direct foreign investments in Israel to USD 3.1 billion from USD 4.5 billion in 2001, at a recession of 60%.

In a statement, the bank said that the Palestinian Intifada, besides the world economic slow and the decrease in foreign assets at the Israeli banks played a basic role in such a recession.

The statement explained that investment in the advanced technology sector in Israel reduced to USD 2.5 billion in 2001, from USD 7.9 billion in the year 2000, coupled with a recession in the shares of technology companies in the world bourses, besides net foreign investment in the bank-notes for 2001 has been reduced in 2001 to USD 108 million from USD 5 billions in 2000.

Moreover, Israel's total foreign debts reached USD 67 billion in 2001 representing an increase of 1.8 billion USD.

The Israeli central Bank justified on Thursday that to the increase of foreign bank assets at the Israeli banks and the foreign guarantees the non- banking sector had got.