'Israel' may have to sell record-amount of bonds to fund Gaza genocide
3 Min Read
Observers estimate total debt issuance to reach 210 billion shekels ($58 billion), a significant increase from last year.
-
Smoke and explosion following an Israeli bombardment inside the Gaza Strip, as seen from the other side of the 'border', Sunday, Feb. 11, 2024. (AP)
A report by Bloomberg on Sunday detailed challenges the Israeli regime is facing with regard to funding its genocide in the Gaza Strip.
According to the report, citing multiple finance ministry sources, "Israel" may have to sell a near-record amount of bonds this year to keep its war finances afloat.
The matter went further out of hand when Moody's Investors Service downgraded "Israel’s" credit rating from level A1 to level A2 on Friday.
The officials also indicated that the regime is expected to rely extensively on shekel debt markets as it ramps up its issuance. They further mentioned plans to increase the sale of foreign-currency bonds, particularly through privately negotiated transactions.
Read more: Haaretz bashes Netanyahu over Moody's 'Israel' credit rating downgrade
Despite mounting pressure from both within the regime and from the US to scale back operations in Gaza, the Israeli leadership reiterated its determination to continue its genocidal campaign.
As a result, "Israel" is projected to experience one of its widest budget deficits in recent times. Expectations are that the regime may require to issue more debt this year than in any previous year except for 2020, when heavy spending was necessitated by the COVID-19 pandemic.
Observers say that the total debt issuance could amount to 210 billion shekels ($58 billion), an increase of nearly a third from last year.
Local markets will be the first to sense the effects of this financial burden, from which authorities typically source approximately 80% of their financing needs.
This strategy aims to reduce reliance on volatile foreign capital flows and instead focuses on tapping into the resources of Israeli pension funds and other large institutional investors, who collectively manage substantial savings totaling almost 3 trillion shekels.
"That should be enough to ensure Israel’s borrowing costs keep steady, at least for the next six months or so", the report says, quoting Mozamil Afzal, London-based chief investment officer at EFG Asset Management.
Could the US cut aid for 'Israel'?
Amid a deterioration of the US' global reputation due to complicity in the Gaza genocide, several reports have surfaced in recent days, conveying that the rift between the Biden administration and 'Israel' was widening.
Earlier in the day, the Washington Post reported that US President Joe Biden and his aides are increasingly edging towards a breach with Israeli Prime Minister Benjamin Netanyahu, noting that they no longer regard him as a productive partner who can be influenced.
According to the report, some of Biden's aides reportedly urged him to publicly criticize Netanyahu over Gaza operations, sources say. Biden, a long-time supporter of "Israel," has been hesitant to do so but is considering it as Netanyahu continues to be frustrated with public actions.
Netanyahu's recent actions, including turning down a prisoner swap deal and moving troops into Gaza against US recommendations, have irked US officials, the report says.
While the White House has rejected calls to withhold military aid, some aides argue that criticizing Netanyahu could allow Biden to distance himself from unpopular policies while affirming support for "Israel" itself.
Biden's private frustration with Netanyahu was evident when he criticized "Israel's" military campaign in Gaza as "over the top."
Read more: Rift between 'Israel', rest of the world widening: Bloomberg
