Finance Minister Bezalel Smotrich participated today (Tuesday) in the conference of the Association of Mortgage Consultants in Eilat and attacked the Bank of Israel and the opposition.
"The decision regarding raising the prime interest rate component was a mistake. The Bank of Israel was wrong. A serious error that hurt many citizens. The risk taken was high," said Smotrich
The chairman of religious Zionism added: "The last period obliges us to take stock, rightly in relation to the state, the Ministry of Finance, the Bank of Israel.
Over a year ago, the Bank of Israel estimated that interest rates were not going to be raised and greatly increased the prime component in highly leveraged loans where the equity is very low - it was wrong in its assessment of the situation.
This contributed to the acceleration of demand.
Obviously he was wrong in his assessment and that's fine, it's not an exact science and it's not a prophecy.
He was wrong in increasing the prime component because the great distress of many buyers today is the product.
The reality is that there was a great temptation to increase the prime component which was very low.
But he is at high risk and here sometimes risks materialize.
We as a country have lessons to learn.
A large part of the distress could have been avoided if we had managed risks a little better in advance."
"A serious error that hurt many citizens."
Bank of Israel, photo: Oren Ben Hakon
The minister added: "Our challenge in the coming years is to maintain the pace of construction starts despite the drop in prices, the rise in interest rates and the drop in demand. To do this we will have to deal with credit difficulties for entrepreneurs and contractors, simplifying and shortening the planning and licensing procedures and maintaining economic viability in the peripheral areas. These steps Look at the Settlements Law and the upcoming budget."
At the end of his remarks, Smotrich referred to the legal revolution and the turmoil surrounding it and said: "We are a democratic country and that is excellent, we discuss and debate and disagree regarding the concepts of what is good for the State of Israel. Alas, if we stop arguing, everyone should express their opinion and influence and promote. But one thing must be out of bounds - Intentional attempts to harm Israel's economy as part of a political struggle. This should be outside our public lexicon. And that there are irresponsible elements in politics and the media."
A storm around him.
Chairman of the Bar Association Avi Hami,
Smotritz also commented on the case of the chairman of the bar association: "If we are talking about this legal reform, take the case that was published last night if this is how judges should be appointed in Israel - tins in dark rooms and dark deals.
We will bring out into the sunlight the best disinfectant.
There will be a public hearing for the judges.
He also added "the process will be cleaner and more professional and transparent and save us all from embarrassments like the ones that were revealed yesterday."
were we wrong
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