JERUSALEM, May 12 (Reuters) – Morgan Stanley has become the 13th bank to join the primary dealer programme for Israeli government bonds, the Finance Ministry said on Tuesday, calling it a sign of confidence in the Israeli economy and its growth opportunities.
Morgan Stanley’s inclusion is intended to lower financing costs, support market depth by expanding the investor base and ensure a high level of liquidity in government bonds, the ministry added.
The lender joins seven other foreign banks – JPMorgan, Deutsche Bank, Merrill Lynch, Goldman Sachs, Barclays, Citi and BNP Paribas – as primary dealers, along with Israeli banks Hapoalim, Leumi, Mizrahi-Tefahot, Israel Discount and First International Bank of Israel.
“The presence and expansion of global financial institutions in Israel testify to the resilience, stability and standing of the Israeli economy in international markets,” said Accountant General Michal Abadi-Boiangiu.
The primary dealer programme for government bonds, the ministry said, is designed to establish a competitive, deep and efficient sovereign debt market.
The programme has played a significant role in supporting the state’s financing capabilities over the past 2-1/2 years, during which more than 500 billion shekels ($172 billion) were raised in the domestic tradable market.
($1 = 2.9072 shekels)
(Reporting by Steven ScheerEditing by Alexandra Hudson)
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