Regulatory Alerts2020-01-12
Industry Indebtedness Limitation
The Bank of Israel issued Circular no. C-06-2600 to amend Proper Conduct of Banking Business Directive no. 315, raising the industry indebtedness limit for construction and real estate from 20 to 24 percent. This regulatory easing is designed to facilitate broader financing for national infrastructure projects, specifically those structured as public-private partnerships. The updated limit applies exclusively to such collaborations, ensuring that the additional 4 percent exposure is strictly allocated to civil engineering works rather than general construction activities.
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