Daily Israel Report
14:16
Reported

News Brief

  9/2/2012, Elul 15, 5772

Steinitz: IDB Problems Pose No Problem for Savers


Finance Minister Yuval Steinitz said he did not expect pensions and other savings of Israelis to be affected by financial problems at IDB Holdings. Speaking at Sunday's cabinet meeting, Steinitz said that he had been watching the situation closely for several months, and that, at least for the moment, the organization's financial problems do not seem to be affecting funds from pension and savings plans that it has been investing.

Over the weekend, reports emerged that IDB had sustained a NIS 1.27 billion loss during the second quarter, and that auditors had said that it was on “the brink of bankruptcy.” In a statement, IDB Holdings chairman Nochi Dankner said that he was working on ensuring that the group would not file for bankruptcy, and that IDF Holdings was prepared to sell assets or liquidate components in order to raise or save money. He added that the company had enough cash to make its debt payments for at least one year.