Kahlon: Elections will be held in March

Finance Minister believes narrow coalition will not hold, rise in interest rates to have limited impact.

Arutz Sheva Staff,

Moshe Kahlon
Moshe Kahlon
Itamar Seida

Finance Minister Moshe Kahlon predicted that the current narrow coalition would not last long and that early elections would be held in March.

"I do not think I am the one who should dismantle the coalition, we have to continue functioning until election day, but I think the government will not be able to hold it together. I do not see how this business holds, we live from Monday to Wednesday. I prefer to sit in the coalition and decide to go to elections at an agreed time. I prefer to do this with agreements, if it is not in agreement, everything will be stopped and the economy will be harmed."

When asked when he believes the elections will be held, he said that if asked as a commentator, he estimates it will be in March. Kahlon added that if he had enough seats, he would like to serve again as finance minister.

The finance minister also discussed the implications of the Bank of Israel's decision to raise interest rates for the first time in seven years on the real estate market and the possibility that this step will lead to a drop in prices.

"We did not open champagne when the interest rate went up," Kahlon said, "The interest rate move is a move that can not be ignored, but I do not see a big impact on the market."

"If the interest rate continues to rise in significant numbers, it will have an effect on investments on the one hand, but on the other hand, the public will be able to get better interest rates in the banks. I do not think there is any significance to the fact that the decision was made now. There is a committee that determines it. It is not a one man decision, and there are also considerations related to the level of interest rates in the world," he added.

"I do not want the young couples to buy apartments at any cost. The move of 90% mortgage imposes part of the risk on the state. We are doing everything today that the young people will not pay for an apartment more than 100 to 110 salaries, and with those numbers we managed to bring them within the price of the tenant.

"As far as I was concerned, I would give the plan a price for a an occupant of the 100th grade," Kahlon said, adding that "when you make a big new plan there are always problems and failures that you did not think about. Our job is to be attentive and correct these issues. I also consult with friends and contractors ... and it is important for me to submit that the contractors are citizens of the State of Israel and care for the young couples. We had one dispute around speculation and the work on the ground could not continue as so. They sold the land at imaginary prices and young couples have lost hope. We managed to curb prices and I hope we will achieve a 2.5% -3% drop in housing prices."




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