The Accountant General of the Ministry of Finance, Yehli Rotenberg, announced today (Thursday) a program for short-term credit insurance with a state guarantee for businesses (“Top-Up Cover” program) in the amount of 500 million dollars.
As part of the plan, the Accountant General will provide a state guarantee in the amount of 500 million dollars to the private credit insurance companies, with the aim of increasing the credit quotas they currently grant. Through the program, Israeli suppliers will be able to continue to sell products and services to their customers on a scale that cannot be obtained at this time if it were not for the state’s intervention, and the small and medium-sized businesses in the economy will be able to continue to receive supplier credit as an additional, available and cheap source of credit compared to bank credit.
Short-term credit insurance is designed to protect businesses from cash flow difficulties that may lead to bankruptcy or loss due to non-payment by their buyers, and this is in view of the payment method used according to which there is a gap between the date of delivery of the services or goods and the date of receipt of payment for them.
The program will open in the coming days after receiving the approval of the Finance Committee of the Knesset on the establishment of a state guarantee framework and subject to the approval of the Accountant General.
The Minister of Finance, Bezalel Smotrich: “This program is designed to increase the supply of credit and ensure the continuity of business activity in the economy. The program will help small and large businesses alike, and is another tool within the framework of all the aid programs launched by the Ministry of Finance with the aim of helping businesses overcome the challenges the economy is facing at this time.’