12 MONTH
CERTIFICATE

Michael Dorfman has joined
the Michigan Association of
Health Plans as director of com-
munications. He will oversee all

5.75'

organizational communications
of the association including me-
dia relations, publications, strate-
gic planning and committee
coordination.

INTEREST RATE

5.870

A free seminar on Medicare
and Medicaid Planning With
the New Tax Laws will be
presented by Maurice A. Bet-
man of Comprehensive Finan-
cial Planning Corporation,
10:30 a.m.-noon Thursday, Dec.
19, at the Farmington Hills Li-
brary. To register, call (800) 598-
7834.

A.F.Y./*

.

60a10
•

Fairway Construction Com-
pany of Southfield captured
the 1996 Excellence in Adver-
tising Award in the advertis-
ing/broadcast category for the
National Association of the Re-
modeling Industry's competi-
tion.

INTEREST RATE

10

• 1 3°
A.P.Y./*

Bank Of Israel
Hits Contractors

These are fixed rate certificates of deposit that are insured by Federal Deposit
Insurance Corporation (FDIC). A minimum opening deposit and balance of $500.00
is required to obtain the stated Annual Percentage Yield.

New regulations threaten to limit the amount of
credit given to builders.

ELA657rdils"

GALIT LIPKIS BECK SPECIAL TO THE JEWISH NEWS

D

wring the last few months,
Israeli builders have been
saying the Bank of Is-
rael's plans to put a lid on
credit for the debt ridden real-
estate sector will place addi-
tional financial pressure on
them.
But bankers insist the new
regulations will not harm the
contractors.
In the last week
of November, the
Bank of Israel said
it would modify the
regulations in an
attempt to reduce
banks exposure to
credit risks.
According to the
Bank of Israel's cur-
rent regulations,
banks can only ex-
tend more than 20
percent of their
credit portfolio to
any one sector if
they set aside pro-
visions for doubtful
debts. Banks that
go over this limit
are required to set
an additional al-
lowance for doubt-
ful debts of up to 1.5 percent of
the amount of unauthorized
credit.
According to the new regula-
tions, at the start of 1997 all Is-
raeli banks will be required to
set aside up to 8 percent of the
amount of unauthorized credit
to the construction sector.

If credit to the construction
sector amounts to 20-25 percent
of the total portfolio, the bank
will be required to create an
additional allowance of 3
percent. On credit of 25-30 per-
cent, the bank will set aside 4
percent. More than 30 percent
will require an 8 percent set-
aside.
The Bank of Israel's decision
to modify the reg-
ulations is main-
ly due to the
stagnation pre-
vailing in the real
estate sector. It is
estimated that Is-
raeli banks have
23 percent of their
loans in real es-
tate.
The limits will
also apply to
mortgage banks.
Approximately
two months ago,
the Bank of Israel
instructed Israel
Discount Bank to
freeze its credit to
the construction
sector. Discount's
loans for con-
struction had reached 41 per-
cent of total bank credit at the
end of the third quarter of 1996.
Housing loans for the gener-
al public will not be included in
the construction industry's cred-
it limits. ❑

(c) Jerusalem Post 1996

BANK

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OPPORTUNITY

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Li

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LLI /

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the Internet but were afraid to ask

ONE STOP Internet is the place to start

We
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Just call us at (810) 541-5025 and we will help you

with the rest. All for surprisingly reasonable rates.

ANTIQUE MALL

Your Complete Antique Resource

S.E. Michigan's Largest

The place to go when you are
looking for real antiques.

10% Discount on Antique
Reference Books and Price Guides.

Open 7 Days 11 a.m.-6 p.m.
Wed. 'til 8 p.m.

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American Heart
Association.

Fighting Heart Disease
and Stroke

D E C EM BE R

Michael Dorfman

60 MONTH
CERTIFICATE

51

