(Israeli) Gov't 25-year debt repayment: NIS 116,000 per capita (NIS 4.48= US $1)

Globes ^ | 28 September 2004 | Zeev Klein

[anotherview]

Gov't 25-year debt repayment: NIS 116,000 per capita

Projected payments on loans and deposits between January 2004 and December 2028 amount to a record NIS 630.4 billion.

Zeev Klein 28 Sep 04 15:52

Payment on the government's total domestic and external debt over the next 25 years, through December 2028, are estimated at NIS 408,900 per family, or NIS 116,000 per person.

The figures are from an analysis of Ministry of Finance and Bank of Israel figures by economic ministries in Jerusalem. Israel's population is currently 6.7 million people in 1.9 million households.

If the shekel-dollar exchange rate reaches NIS 5.00/$, Israel's debt repayment will rise to over NIS 417,000 per family and NIS 118,000 per person.

Projected payments on loans and deposits for the government's domestic debt and large budget deficits between January 2004 and December 2028 amount to a record NIS 630.4 billion. If NIS 14.4 billion in Ministry of Finance-managed issues are added, the amount rises to NIS 644.8 billion. The figures assume that the government maintains its deficit target of 3% of GDP and an annual increase in spending ceiling of 1%.

The high cost of the military and civilian evacuation from the Gaza Strip jeopardizes these targets in 2005-06, since the costs are not included in the state budget framework.

The government's debt has the following charactueristics

• Domestic debt per family through December 2028 - NIS 332,000
• 46% of the domestic debt will fall due over the next five years.
• 47% of the external debt, or NIS 62 billion, is scheduled for repayment by 2008.
• 53% of overseas loans will fall due from 2009 onwards.

Published by Globes [online] - www.globes.co.il - on September 28, 2004

[anotherview]

For Americans to understand what this means:

4.48 New Israeli Shekalim (NIS) = US $1

This is the consequence of borrowing, debt, and deficits. The U.S. is in similar shape. Fiscal conservatives know we must live within our means, something the Bush administration has forgotten and something Finance Minister Netanyahu must remind the Knesset over and over again.