Bank of Israel Eases Capital Requirements for Water Corporation Loans
Translated & summarized from TheMarker by baba
The Bank of Israel and the Water Authority have reduced capital requirements for banks lending to water corporations, treating them similarly to local authorities. This change, implemented in August, is expected to save consumers at least 10 million shekels annually. Water corporations borrow about 1 billion shekels each year.
The story in 4 lines · by baba
- Bank of Israel reduced capital requirements for water corporation loans in August.
- The change aligns water corporation loan requirements with those for local authorities.
- Water corporations borrow about 1 billion shekels annually.
- The Water Authority expects at least 10 million shekels in annual consumer savings.
In August, the Bank of Israel and the Water Authority modified the capital requirements for banks extending loans to water corporations. Previously, the Bank of Israel treated these corporations as private businesses, despite their municipal backing and support through water tariffs, which are intended to ensure loan repayment. The new regulations align the capital requirements for water corporation loans with those for loans to local authorities.
Water corporations raise approximately 1 billion shekels annually in loans. The Water Authority estimates that this regulatory change will result in annual savings of at least 10 million shekels for consumers.