The government on Sunday approved a plan presented by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz to inject an additional NIS 14 billion ($4 billion) into the corona-stricken economy, bringing the state's bailout plan to a total of NIS 100 billion ($28 billion).
Israel's economy, regularly lauded for being one of the most stable in the world, was forced to slow down to about 15% activity as the public and private sectors were shuttered in early March in an effort to stem the spread of COVID-19.
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While Israel has been gradually resuming economic activity over the past two weeks, the coronavirus crisis has triggered unprecedented unemployment of 26% – compared to 4% prior to the outbreak. Currently, over a million Israelis have filed for unemployment benefits.
The funds will help revive businesses and promote new projects to encourage employment.
This financial plan also includes assistance to companies operating in industries that have been crippled by the outbreak and cannot resume their regular activities in the near future due to their unique circumstances.
In particular, a loan guarantee of NIS 4 billion ($1.13 billion) will be put in place for them.
i24NEWS contributed to this report.
