The Israel Government announced plans today to issue new securities valued at 250, 000, 000 Israeli pounds (over $80, 000, 000), to be sold during the current fiscal year in the domestic market. The announcement was made at a press conference here by Minister of Finance Levi Eshkol.
Mr. Eshkol said the bonds would be in two types, one linked to the cost-of-living index and the other not linked to it. He said the linked bonds would pay five percent gross interest, or 3. 75 percent tax free interest. The unlinked bonds will pay eight and a half percent.
He said that 110,000,000 pounds ($36,000,000) derived from the sale of the new securities would be incorporated in the budget. The remaining 140, 000, 000 pounds ($46, 000, 000) would be deposited in the Bank of Israel, and thus withdrawn from circulation.
The Finance Minister stressed he had been urging the need for increased savings, and he hinted legislative measures might have to be used to compel people to save a larger proportion of their income. There was no indication as to whether this meant additional measures, like the compulsory loan, which he indicated in Parliament yesterday the Government planned to introduce soon.
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