BoI chief warns Netanyahu of economic risk of judicial changes

Prime Minister Benjamin Netanyahu and Governor of the Bank of Israel Amir Yaron held a meeting yesterday evening at Netanyahu’s office in the Knesset. At the meeting, Yaron warned the prime minister of the possible consequences of the government’s planned judicial reforms, in the light of statements by the international credit rating agencies and talks that he held with investors at the World Economic Forum in Davos, from which he had just returned. Yaron also surveyed Israel’s economic position and the challenges facing it, both local and international.

According to a statement by the Bank of Israel, Yaron presented Netanyahu with a strategic economic plan drafted by the bank containing policy recommendations in a broad range of areas, and discussed various matters with him in advance of the presentation of the forthcoming Economic Arrangements Bill that will accompany the state budget.

In an interview with Reuters two weeks ago, S&P  Global Ratings director Maxim Rybnikov, who is the analyst mainly responsible for Israel’s rating, said, “If the announced judicial system changes set a trend for a weakening Israel’s institutional arrangements and existing checks and balances this could in the future present downside risks to the ratings. But we are not there yet.”  

Published by Globes, Israel business news – en.globes.co.il – on January 25, 2023.

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