Prof. Jacob A. Frenkel, Governor of the Bank of Israel has agreed, upon the request of Prime Minister Ehud Barak, to extend his service as Governor of the Bank by an additional week up to Sunday, January 9, 2000.

The Prime Minister informed the Governor that by the end of this week he would announce the name of the candidate chosen to serve as the next Governor.

Prime Minister Barak reiterated his position that Israel needs to have a responsible monetary policy, similar to the one conducted by the Bank of Israel in recent years, as well as an independent central bank. This, together with the commitment of the financial markets to competition and integration of the Israeli economy into the world economy, will reinforce economic stability as a precondition for sustainable growth.

The Prime Minister added that this approach will contribute to increase investments, to job creation, and will also provide an opportunity for a fundamental treatment of social hardship.