US Cuts Israeli Loan Guarantees

World | November 26, 2003, Wednesday // 00:00

US is cutting nearly USD 290 M from a loan guarantee package to Israel in response to its settlement activity in the West Bank and Gaza. Israel is also being penalised for the building of a barrier in the West Bank to separate Israelis and Palestinians. The money comes from a USD 9 B package of loan guarantees - in addition to direct aid provided by the US to Israel. It is seen as an important symbolic gesture and evidence of a new effort by Washington to calm the conflict. It also means Israel will not be able to raise so much money in loans from foreign banks.

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