Treasury examining aid package for exporters amid weak dollar: grants and tax deferrals on the table
Globes has learned that accelerated discussions are underway in the Finance Ministry regarding an aid package for exporters, due to the dollar's decline. The Manufacturers Association demands grants and tax deferrals worth billions of shekels.…
Assessment
The Finance Ministry's accelerated talks on an exporter aid package reflect mounting pressure from a shekel that has surged over 18% against the dollar in a year. At stake is the competitiveness of Israeli industry, which faces shrinking margins as revenues in dollars lose value locally. The manufacturers' demand for billions in grants and tax deferrals sets up a fiscal test for the government. Watch for whether the package materializes and how the Bank of Israel might respond to further shekel strength.