“The ‘Financial Availability Covenant to Assist Soldiers in Mandatory Service’ is a voluntary covenant designed to ease the financial challenges faced by those serving in mandatory military service. It was developed by the Banking Supervision Department in collaboration with banks, credit card companies, the Association of Banks, the Ministry of Justice’s legal aid office, the ‘Nadan’ organization, and the Enforcement and Collections Authority.
Dani Hahiashvili, the Supervisor of Banks, stated: “Mandatory service in the Israel Defense Forces is one of the cornerstones of Israeli society. The ‘Financial Availability Covenant to Assist Soldiers in Mandatory Service’ is intended to help those who need assistance, and to enable them to transition to civilian life without significant financial obligations. This covenant creates various tools to improve the soldiers’ financial conduct, taking into account their personal backgrounds, the nature of their service, and their economic and personal needs. We expect the banking system to show broad social involvement and responsibility by supporting different population groups in Israeli society and helping them build a better reality. This expectation is being met, in part, by the banking system’s important and commendable commitment in adopting this covenant for the benefit of all of our mandatory-service soldiers, and I welcome that.”
The IDF, as the nation’s army, brings together people from all parts of Israeli society and sees itself as a melting pot. The banking system places great importance on supporting IDF soldiers, and takes various steps to assist them.
After the outbreak of the Swords of Iron War and Operation Rising Lion, the banking system adopted the measures prepared by the Bank of Israel to help different groups deal with the effects of the war and the operation. This includes reservists—whether private citizens or business owners—who have been identified as eligible for assistance such as deferred mortgage and loan payments, waived fees, waived interest charges on overdrafts up to certain limits, and more. Additionally, the banking system has established a fund to support business owners who are reservists and their spouses.
Under this covenant, the banking system is also stepping up to help soldiers in mandatory service.
Several organizations that help these soldiers—including the Ministry of Justice’s legal aid office and the ‘Nadan’ nonprofit—have reported cases where the combination of a demanding and lengthy military service and insufficient financial awareness led soldiers to poor financial decisions and economic difficulties during their service. In response, the Covenant was drafted to strengthen the support available to these soldiers by enhancing personal connections with the relevant support groups and offering dedicated financial solutions for those in debt.
The banking system will create a special process for handling soldiers’ debts as part of this covenant. This will include direct conversations with soldiers in debt, improving their financial knowledge, and cooperating with the relevant institutions. The goal is to help soldiers resolve debts they incurred during their service in a simpler, more efficient way, and to help prevent similar issues from arising in the future.
While the Financial Availability Covenant to Assist Soldiers in Mandatory Service focuses mainly on finding ways to ease the burden on soldiers who have accumulated debts, it also includes broader measures to improve services for all soldiers in mandatory service. These efforts include promoting financial education and awareness among soldiers, and emphasizing a more careful and sensitive approach during periods of conflict compared to routine times.
It is worth noting that any banking institution that wishes to do so may offer additional benefits to soldiers in mandatory service beyond the set of measures already outlined in the Covenant.