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Governor of the Bank of Israel Prof. Amir Yaron said, “Operation Rising Lion has ramifications on the Israeli economy due to the physical damage and due to the contraction of activity in certain areas around the country. The Bank of Israel is working to assist populations that have been adversely impacted by the events, and thus to help the economy return to routine economic activity immediately when events wind down. As such, the Bank of Israel has led an additional assistance framework for populations negatively impacted directly by damage from the fighting. These include households with members who have sustained injuries or whose homes have been damaged by rocket fire and have been forced to relocate from their homes, small businesses whose activity has been adversely impacted, and reserve soldiers who have been called up to serve. The additional banking framework joins previous frameworks that have been formulated in recent years. The Bank of Israel will continue to act in all that is required to help populations that have been adversely impacted and to support the return of the economy to activity as soon as possible.”

 

Supervisor of Banks Daniel Hahiashvili said, “The complicated security situation created due to outbreak of Operation “Rising Lion” has economic ramifications on many households and businesses, including cash flow difficulties. The framework we have formulated, and that has been adopted by the banking system, serves as a first and rapid layer for financial assistance, by easing cash flow issues for the coming period for those who need it. In addition to the broad framework, it is certainly appropriate that the various banks add a designated layer adjusted to the features and needs of their customers. I commend the banks for joining the current framework that has been formulated and the rapid response to provide assistance to the customers adversely impacted.”

 

In view of the ramifications of Operation “Rising Lion” in the Israeli economy and in view of the Home Front Command restrictions affecting broad areas across the country, the Bank of Israel formulated vis-à-vis the banking system a voluntary framework for assisting populations adversely impacted by damages of the fighting. These include small and micro business owners, households whose home were damaged by missile and were evacuated from their homes, as well as reserve soldiers called up to serve.

 

The framework will begin July 1, 2025[1], and will remain valid through July 31, 2025. It should be noted that banks that are interested in beginning the framework’s features earlier than the original date for submitting a request can do so. It should be clarified that a customer may submit a request to be included in the framework through July 31, 2025.

 

Populations included in the framework and benefit for them:[2]

 

  1. Households whose homes have been damaged due to Operation Rising Lion and have been evacuated, or households with members who have been injured due to the Operation
    1. A deferral of mortgage payments with no limitation on the amount, for a period of 3 months, without being charged interest or fees.
    2. A deferral of consumer loan payments for a period of 3 months, for a cumulate amount of up to NIS 100,000, without being charged interest or fees.
  2. Small[3] and micro businesses that have been adversely impacted by Operation rising Lion (physically or financially - in accordance with criteria detailed below):
    1. A deferral of loan payments of up to 2 months for a cumulative amount of up to NIS 2 million for a company that requests it, without being charged interest or fees
    2. In addition, for businesses of reserve soldiers – an exemption will be granted for a period of two months from charging any interest on a negative balance in the business’s current account (up to NIS 30,000 in overdraft) – a benefit granted automatically to businesses known to the bank as owned by reserve soldiers in actuality or those who update the bank in that regard.
    3. Businesses that do not meet the criteria defined (“second circle”) will be able to defer loan repayment at a cumulative amount of up to NIS 2 million per business for a period of 2 months, with the regular interest rate charged.

 

Following is related helpful information:

The Consumer Enquiries and Inspections Unit at the Banking Supervision Department: *9086 or 02-655-2680

The hotline for the Commissioner of Credit Data at the Bank of Israel - *6194

Information page for banking issues that are on the Bank of Israel website.

 

[1] Due to the preparation required, the special situation and the short time period until the application of the framework, should a specific bank not complete its preparation for activating parts of the framework, it shall update its customers via the website, and work to put it into use as soon as possible.

[2] See too the appendix and definitions at then end of the notice.

[3] With annual turnover of up to NIS 25 million.