U.S. Israel Joint Economic Development Group

U.S. – Israel Joint Economic Development Group

Following is the text of a joint U.S. – Israel statement released at the conclusion of the Joint Economic Development Group meeting of April 18, 2005.

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On April 18, delegations of Israel and the United States held useful, in-depth discussions on the implementation of Israel’s economic reform program and the developments of the Israeli economy. The U.S. delegation applauded Israel’s progress toward achieving the goals of the economic plan presented to the JEDG at its last meeting of February 2004 in Israel. The United States underscored the importance to Israel’s economy of fiscal discipline – particularly limiting the growth of government expenditures – and continued economic reform. The Israeli delegation reaffirmed its commitment to maintaining its reform program in the years ahead.

The Israeli delegation was chaired by Dr. Joseph Bachar, Director General of the Israeli Ministry of Finance. The U.S. delegation was chaired by E. Anthony Wayne, Assistant Secretary of State for Economic and Business Affairs, who was joined by Randal Quarles, Assistant Secretary of Treasury for International Affairs.

Mr. Wayne hosted a working lunch to open the meeting, at which Dr. Bachar presented an overview of the Israeli economy and discussed recent economic developments and macroeconomic forecasts. Additional topics during the course of the afternoon included capital market reform, monetary policy, and labor market developments.
Pursuant to Congress’ decision to extend the period of the Loan Guarantee Program for two additional years to 2008, the delegations agreed on a mechanism for implementing that decision. In light of this extension, it was agreed that the remaining $3 billion in loan guarantees should be authorized in annual $1 billion tranches. The delegations agreed on the broad terms for release of the 2005 tranche of U.S. loan guarantees in the amount of $1 billion and reaffirmed their intention to continue to monitor progress on economic reform and fiscal restraint through regular meetings of the JEDG, at which the remaining $2 billion would be released. The Israeli delegation expressed its deep gratitude for the economic support it has received from the United States.

SOURCE: state.gov 2005/434 Released on April 19, 2005 Joint Statement, Adam Ereli, Deputy Spokesman Washington, DC April 19, 2005