There are many aspects of Israel's economic suffering due to the repercussions of its war on Gaza (Al Jazeera)
The repercussions of Israel's war on the Gaza Strip have cast a dark shadow on the vision of the Israeli-controlled Galilee region, located near the border with Lebanon, as a center for innovation, work and resilience, Israeli technology investor Ariel Margalit wrote on the Times of Israel website.
Economic desperation
While southern Israel (near the Gaza border) bore the brunt of the destruction, according to the Israeli businessman; The north was also hit hard, and continues to be so; More than 500 homes were destroyed, tens of thousands were evacuated, and thousands of businesses were destroyed.
As the war continues, economic desperation in the North increases; The loss is not limited to the financial aspect only, but with each passing month, the Galilee is losing about 10% of its population forever, according to the newspaper, citing Margalit, who said that the boom in trade in the city is now facing a real threat of bankruptcy.
It is noteworthy that Hezbollah and the Palestinian factions are launching daily attacks on northern Israel in an expansion of the war on the Gaza Strip, amid escalation and doubts that it will lead to a ground war on areas of southern Lebanon.
The Israeli businessman believed that the "economic devastation" not only threatens the livelihoods of a large number of Israeli families, but also undermines the prosperity of the region, which is located near the Lebanese border.
The Israeli businessman called on Margalit not to open a northern front with Hezbollah, and said that this should not be seen as a sign of weakness, but rather as a strategic decision that takes into account Israel's interests and capabilities.
warning
The Central Bank of Israel had warned Israeli families against further borrowing, and wrote in its financial stability report for the second half of 2023 that Israeli banks had agreed to postpone the repayment of nearly 6 billion shekels (about 1.6 billion US dollars) in more than 300,000 loans, according to The Israeli newspaper Globes reported.
The Bank of Israel indicates that about 30% of these loans are allocated to families and companies that postponed repayment as part of the program for those directly affected by the evacuation from their homes (in the Gaza envelope settlements), or due to the killing of members of their families, or who were called up as reserve soldiers in the army.
The Bank of Israel explains that from the point of view of macroeconomic stability, postponing debt repayment allows families and companies to avoid reducing consumption or activities, and reduces the possibility of entering into a state of default, anticipating that the war on Gaza will make it difficult for families to pay their obligations as a result of the decline in average income from work. According to the newspaper.
Until the end of 2023, the repayment of 75,000 loans (including mortgages and other loans) were deferred, while the repayment of another 150,000 home loans outside the plan were deferred. In total, families deferred repayment of installments by about two billion shekels.
Source: Al Jazeera + Israeli press