The government will supply NIS 10 billion ($2.81b.) in “first aid” to assist the Israeli economy overcome the impact of the novel coronavirus outbreak, Prime Minister Benjamin Netanyahu said on Wednesday, primarily in the form of loans to businesses and a cash injection into the healthcare system. “We are following developments closely, and the coronavirus has had a great economic impact on the global and Israeli economy,” said Netanyahu at a press conference, emphasizing that Israel has entered the crisis with a strong economy and low unemployment. “Our program is to enable continued operation of the economy. We are doing it with an immediate package of NIS 10 billion.” The financial package represents an extension of an NIS 4b. loan fund for affected businesses that was announced by Netanyahu at a cabinet meeting on Sunday, and could be extended further if necessary. An additional NIS 4b. ($1.13b.) will on offer to businesses in the form of low-interest loans, NIS 1b. ($280m.) will be supplied to strengthen the healthcare system, and a final NIS 1b. ($280m.) will focus on “special needs” – bolstering services including Israel Police, Israel Fire and Rescue, and the Prisons Service. Netanyahu said financial support for the struggling aviation industry, including Israeli flagship carrier El Al and airlines Israir and Arkia, will be provided separately from the aid package. “There is no shortage of goods, and there will not be either. The reason is simple – most of the freight arrives by sea,” said Netanyahu. “We will ensure that this is not harmed. There is also a question regarding air freight, and we will do all we can to enable this to continue.” Businesses applying for loans should be able to receive assistance within seven to nine days, Finance Minister Moshe Kahlon said. “We are in a difficult period. The economy is in a difficult period, an incident unlikely any other we have known in the past,” said Kahlon. “All the authorities have their hands on the steering wheel, and we are in control of the situation.” Kahlon hinted at additional measures likely to be introduced early next week, including steps to strengthen the National Insurance Institute (Bituah Leumi), which is tasked with assisting the elderly and the growing number of workers made redundant or placed on unpaid leave. Responding to Netanyahu’s announcement, Israel Incoming Tour Operators Association director-general Yossi Fattal described prioritizing financial assistance to the aviation industry as “a mistake” if incoming tourism operators are not also taken into account. “Without us, the plan to save the aviation industry would be incomplete,” said Fattal. “We should be among the top priorities, because without us there will be no tourists for planes and hotels.”
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