Discount Bank Sees Solutions for Kibbutzim as Organizational Mission

The current economic climate is complex and difficult to predict due to ongoing security and political instability, Assaf Eldar, Vice President and Head of the Banking Division at Discount Bank, stated Sunday at the Kibbutz Growth Conference. Eldar highlighted global uncertainties including the US midterm elections, the war in Ukraine, and social unrest in Europe, alongside ongoing security tensions with Iran and in Gaza, Lebanon, and Syria. He noted that political uncertainty, particularly following elections, exacerbates social instability, making the situation for kibbutzim even more unpredictable.

Eldar pointed to the unresolved issue of property rights, which has persisted for a decade, leaving kibbutzim in a state of significant regulatory and statutory ambiguity. This situation creates different population segments within kibbutzim, including original members, expanded communities, entrepreneurs, and partners, impacting their potential for economic growth. He also identified the energy sector as another area with significant growth potential for kibbutzim that remains unregulated. Issues such as the halting of server farm construction permits by the Electricity Authority and ongoing debates about new power station locations, peripheral development, and grid connection requirements create substantial uncertainty.

Despite these challenges, Eldar emphasized three anchors of certainty: the resilience and strength of kibbutz members and their leadership, who have a proven ability to overcome crises; the bank's commitment to finding tailored solutions for kibbutzim, viewing this as an organizational mission rather than being deterred by uncertainty; and the certainty that the Kibbutz Growth Conference will convene again next year. He drew a parallel to the agricultural season, comparing the current period to sowing seeds in uncertain conditions, expressing confidence in future harvests through shared effort and belief in hard work.