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China boost financial protocol by US$500m
[JERUSALEM] Israel and China are expanding by US$500 million a protocol that helps to finance Israeli exports to China.
The agreement, signed on Thursday, increases the financing available to US$2.6 billion. It comes amid growing business ties between the two countries, as the Israeli government encourages companies to export to the East.
China, Israel's second-largest trading partner by dollar value, is also looking at an expansion in bilateral trade, which reached nearly US$9 billion last year.
The agreement "indicates the success of the protocol in opening the Chinese market to Israeli companies," said Israeli Accountant-General Michal Abadi-Boiangiu.
Through the arrangement, Israeli banks offer long-term credit to Chinese importers who purchase equipment from Israeli exporters, transactions that are then guaranteed by the Israeli government. The insurance allows Israeli exporters to successfully compete in the global market, the Finance Ministry said.
"The policy of using state guarantees to support growth- generating targets is reflected in the expansion of the protocol, which will lead to the increase in the Israeli exports, thus benefiting employment, GDP, and tax revenues," Mr Abadi-Boiangiu said.
Since 2010, 100 export transactions totalling US$100 million have been executed, the ministry noted.
Most transactions are in healthcare, including the sale of medical equipment and building and renovation of hospitals. Others relate to education, transportation, communication, infrastructure and agriculture.