JERUSALEM (Jul. 23)
The Knesset Finance Committee approved a rehabilitation plan for moshavim Thursday, ending a long dispute between Labor and Likud over measures to ease their financial difficulties.
The plan, prepared by a special subcommittee, would cancel part of the moshavim’s debts to banks and the Jewish Agency. The repayment of other loans would be spread over a four-year period. They amount to 852 million shekels and would be repaid at 6.7 percent interest.
The banks and the Jewish Agency will write off the balance of the debts, amounting to 24 million Shekels. Three Likud members of the Committee, including former Finance Minister Yoram Aridor, voted against the proposal. Aridor said it would not solve the problem and the moshavim, largely Labor-affiliated, would need more assistance in the future.