“Israel” records $75.9B debt to fund Gaza, Iran operations

“Israel's” Ministry of Finance announced, on Monday, that the country has accumulated a debt of 278.4 billion shekels (USD 75.9 billion) over the past year to finance its military operations in Gaza, Iran, and against its allies.

This figure surpasses the previous record of 265 billion shekels set during the COVID-19 pandemic in 2020.

Approximately 81 percent of the borrowing was conducted through the domestic bond market, while “Israel” issued bonds worth USD8 billion in international markets, marking the largest issuance in its history.

Additional sales occurred through private deals, including those by the Israel Bonds organization, based in the US.

Some deals focused on the Brazilian real (BRL), which is popular among investors in Latin America due to a tax exemption treaty between “Israel” and Brazil.

- War budget and costs -

The budget deficit for “Israel” in 2024 has reached 6.9 percent of its Gross domestic product (GDP), surpassing the original target of 6.6 percent, although it remains under the 7.7 percent cap approved by the

“Israel's” budget deficit for 2024 has reached 6.9 percent of its GDP, surpassing the original target of 6.6 percent, though it remains below the 7.7 percent cap approved by the “Israeli” parliament.

According to the Bank of Israel, the cost of the ongoing war is expected to reach 250 billion shekels (USD 68 billion) by the end of this year.

- Future financial plans -

“Israel's” government plans to reduce borrowing in 2025, with an expected debt of 160 billion shekels (USD 43.5 billion), according to finance ministry officials. This move is aimed at reducing the fiscal deficit and improving the economic situation.

Yali Rothenberg, the Accountant General of "Israel", stated that adhering to financial controls and providing reassurance to markets is essential.