For the first time in the American state's history, Louisiana has purchased $5 million in Israel Bonds to diversify investments and develop economic ties between the State of Louisiana and the State of Israel.
"This is a win-win situation for Louisiana and Israel," Louisiana Treasurer John Kennedy said earlier this month. "Israel is the only democracy in the Middle East. It is America's only true friend in the Middle East, and it is one of our staunchest allies. I am pleased that we could take this first step in forging a meaningful, economic relationship between Israel and Louisiana."
New legislation passed by Louisiana lawmakers this year allows the State of Louisiana to invest up to 5% of certain state-run trust funds in foreign bonds. The new regulations require, among other things, that the foreign bonds are denominated in US dollars, have an "A" rating, and are backed by the full faith and credit of the country in question. The state's $5 million investment in Israel is the first investment by Louisiana under the new rules.
"Both the United States and Israel are facing uncertainty in terms of their economic growth and security," said Treasurer Kennedy. "Purchasing these bonds helps Israel obtain much-needed funding to move forward with projects that will aid in its growth and development. This investment also benefits Louisiana because it is a secure way of diversifying our trust fund portfolios using bonds that are backed by the full faith and credit of the Israeli government."
Louisiana has already benefited from a relationship with Israel over the years. In 2003, Louisiana exported about $188.8 million worth of manufacturing goods to Israel. The total value since 1991 is over $3 billion. In addition, Louisiana companies received approximately $833,500 in 2003 for US government-funded military contracts with Israel through the Foreign Military Financing (FMF) program. Israel now ranks as Louisiana's 25th leading trade partner.
"This is a win-win situation for Louisiana and Israel," Louisiana Treasurer John Kennedy said earlier this month. "Israel is the only democracy in the Middle East. It is America's only true friend in the Middle East, and it is one of our staunchest allies. I am pleased that we could take this first step in forging a meaningful, economic relationship between Israel and Louisiana."
New legislation passed by Louisiana lawmakers this year allows the State of Louisiana to invest up to 5% of certain state-run trust funds in foreign bonds. The new regulations require, among other things, that the foreign bonds are denominated in US dollars, have an "A" rating, and are backed by the full faith and credit of the country in question. The state's $5 million investment in Israel is the first investment by Louisiana under the new rules.
"Both the United States and Israel are facing uncertainty in terms of their economic growth and security," said Treasurer Kennedy. "Purchasing these bonds helps Israel obtain much-needed funding to move forward with projects that will aid in its growth and development. This investment also benefits Louisiana because it is a secure way of diversifying our trust fund portfolios using bonds that are backed by the full faith and credit of the Israeli government."
Louisiana has already benefited from a relationship with Israel over the years. In 2003, Louisiana exported about $188.8 million worth of manufacturing goods to Israel. The total value since 1991 is over $3 billion. In addition, Louisiana companies received approximately $833,500 in 2003 for US government-funded military contracts with Israel through the Foreign Military Financing (FMF) program. Israel now ranks as Louisiana's 25th leading trade partner.