Economy Minister Orna Barbibai this week addressed Finance Minister Avigdor Lieberman with the aim of promoting for the first time in Israel the establishment of a stock exchange for small and medium-sized businesses, Israel Today has learned.
Her office CEO Ron Malka met in New York with the CEO of the LTSE Small and Medium Business Exchange, and they expressed a willingness to cooperate when the Israel Stock Exchange is established for the first time.
The main goal of this initiative is to give a boost in the form of additional funding sources for small and medium-sized businesses - to increase the supply of capital and loans for them, which at this stage is limited compared to large and public companies.
"As part of the program to promote small and medium-sized businesses, which we see as a major engine of economic growth, the Ministry of Economy is examining several options for diversifying funding sources," Barbibai wrote to Finance Minister Lieberman.
Another article: "After launching highly successful credit funds, we are also interested in raising shareholder capital from the public through institutional investors. Raising shareholder capital from institutional investors will allow small and medium-sized businesses to create a capital structure tailored to the type of business activity." So far".
The Minister of Economy also wrote to Lieberman: "To this end, we joined the Securities Authority and together we expanded the initiative to establish a dedicated stock exchange for start-up companies that has not been implemented so far, for a stock exchange for small and medium-sized businesses in general, including start-up companies. "The small and medium-sized ones will be able to increase competition in the capital market, which is known for its concentration. We will be happy to cooperate in promoting the initiative to establish such a dedicated stock exchange as soon as possible."
The model discussed in the Ministry of Economy is based on the removal of regulatory barriers for small and medium-sized businesses that are currently imposed on public companies.
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