Israelis Visit US Asking For $12 Billion Aid Package - BBC
Sun Jan 5, 5:33 AM ET
LONDON -(Dow Jones)- An Israeli delegation is due to arrive in Washington to try to secure an emergency aid package worth $12 billion, the BBC reports on its Web site.
Israel's economy is suffering from one of the worst crises in the country's history. The conflict with the Palestinians, together with the world economic downturn, has led to rising unemployment and falling investment.
Israel submitted the request to the U.S. several months ago and is now sending a senior delegation to follow it up.
The delegation includes the head of the prime minister's office, Dov Weisglass, as well as the directors general of the finance and defense ministries.
A third of the aid package would be for military and security spending, to help Israel fight the Palestinian uprising and boost its defense preparations for a possible U.S.-led war against Iraq. The rest of the money would be in the form of loan guarantees.
The U.S. is an obvious place to turn for help; it already gives its close ally $3.2 billion in aid every year.
Weisglass called the request part of "very deep and involved strategic relations" and said Washington was regarding it favorably.
Israeli commentators have said that even if Israel gets the money, it won't have an immediate impact on the economy.
That suggests the authorities are looking more for improved confidence and boosted credit ratings than immediate rescue.
The Israeli Prime Minister, Ariel Sharon (news - web sites), does seem eager to get this vote of confidence, even though the dire economic situation hasn't had an impact on his poll standings ahead of general elections.
From Yahoo News article here