Bankruptcy predicted

Press, Volume CXVI, Issue 34151, 12 May 1976, Page 23

Bankruptcy predicted

I LN' Z. Press Assn—Copyright) TEL AVIV, May 11. Radio Israel has forecast an economic crisis with mass unemployment and total bankruptcy in foreign currency reserves. Israel’s economy was in serious trouble, according to what was said to be a secret report bv the budget division of the Finance Ministry, the State radio said. Unless corrective measure was taken. Israel would have no foreign currency reserves at all by 1978. the radio quoted the Treasury report as predicting. The Bank of Israel said present i currencv reserves were SUS 1000 m I The broadcast said Israel

(needed to raise SU.S.SOOm or unemployment next year would rise to 120,000 — crisis proportions in the Jewish State. The Ministry of Labour said the average daily unemployed figure was now a mere 1000, with more than 8000 jobs open. |. Israel is counting on] |SU.S.SSOm in interim Amerilean aid to help stiffen its isagsing economy. ; The director-general of the (Finance Ministry saia the report was unofficial and contained many inaccuracies He did nor deny the main substance of the leaked forecast, but protested that it could alarm the public and harm the country’s economic prospects.