Hundreds of Interest-Free Loan Funds Lack Licenses Amidst 5 Billion Shekel Deposits
Translated & summarized from TheMarker by baba
Around 5 billion shekels are deposited in interest-free loan funds (Gemachs) in Israel, with 90 of 109 applicants still awaiting licenses since 2022. The Movement for Freedom of Information is urging regulators to act lawfully. New operational guidelines for Gemachs were recently published.
The story in 4 lines · by baba
- 90 interest-free loan funds (Gemachs) lack licenses despite holding 5 billion shekels in deposits.
- 109 Gemachs applied for licenses in 2022, but most have not yet received them.
- The Movement for Freedom of Information is calling for regulatory action in accordance with the law.
- New operational guidelines for Gemachs were recently issued by the Authority for Financial and Trade Arrangements.
Approximately 5 billion shekels are deposited in interest-free loan funds, known as Gemachs, primarily within the Haredi community, with indications that this sum is growing. Of the 109 Gemachs that applied for licenses in 2022, 90 have yet to complete the process and receive official authorization. This information was obtained by the Movement for Freedom of Information. The Authority for Financial and Trade Arrangements recently issued guidelines for Gemach operations for the first time. The Movement for Freedom of Information stated, "The time has come for the state's gatekeepers and regulators to act in accordance with the law and not out of fear of political factors."
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