Treasury Secretary Janet Yellen warned that the West Bank’s economy could collapse if Israel doesn’t preserve its banking relationship with Palestinian financial institutions in the territory it occupies, highlighting another potential source of instability as Israel also fights foes in Gaza, Lebanon and Iran, the Wall Street Journal reported. In a letter to Prime Minister Benjamin Netanyahu, Yellen and several of her global counterparts urged the Israeli leader’s government to approve a waiver that would continue to allow Palestinian and Israeli banks to correspond.
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Israel
Israel’s central bank left interest rates unchanged even as it lowered economic-growth forecasts, with the conflicts in Gaza and Lebanon causing inflationary pressures and preventing the country from joining a global easing cycle, Bloomberg News reported. The bank kept its benchmark rate at 4.5% on Wednesday, in line with the estimates of all economists surveyed by Bloomberg. It was the monetary committee’s sixth straight hold.
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Shelly Lotan’s food-tech start-up in northern Israel was just a year old when Hezbollah started firing missiles across the border last October and the government advised everyone in the area to evacuate, The Washington Post reported. Two of her five employees were called up to serve in the military. Those that remained moved the company’s office to one of her employee’s parents’ basement. Investments slowed to a trickle.
At the end of 2022, the Selina hospitality chain went public on Wall Street through a merger with a Special Purpose Acquisition Company (SPAC) at a value of $1.2 billion. Founded and managed by Israelis Daniel Rudasevski and Rafi Museri, Selina was one of the hottest brands in the market, presenting investors with plans for a novel hospitality experience. However, its performance did not meet expectations, and within less than two years, the chain fell into insolvency, Calcalistech.com reported. By the end of August, all its assets were sold.
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Israel’s central bank left interest rates unchanged, seeking to balance the impact of rising inflation against weak growth as uncertainty surrounds fiscal policy, Bloomberg News reported. The monetary committee kept its benchmark rate at 4.5% on Wednesday for a fifth straight meeting. In a statement accompanying the decision, policymakers largely repeated previous guidance, saying the focus should be on stabilizing markets, controlling price rises and supporting economic activity. Inflation has been on the rise, mostly linked to the war against Hamas.
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Lusix, the synthetic diamond company founded by Benny Landa, is on the brink of filing for insolvency. The company has informed its creditors of its intention to do so, though the timing remains uncertain, YNetNews.com reported. Sources have told Calcalist that Lusix informed its shareholders last week that it urgently needs to raise $15 million to continue operations. Without this capital infusion, the company will likely become insolvent. Although some investors have considered providing additional funds, it is not believed that this has materialized.
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