The long-awaited sovereign wealth fund in Israel is expected to begin operation at the start of the fourth quarter, as tax on natural gas and other resources reach a minimum level, according to Finance Minister Avigdor Lieberman.
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Israel discovered huge amounts of natural gas in the east Mediterranean a decade ago and began producing substantial quantities of gas in 2013.
The wealth fund, which is designed to rid an overheated currency of the sudden rise in national wealth, was established in 2014 and is expected to begin operating in 2018, but political turmoil and a slower stream of revenues have caused delays.
Israel's tax authority said the fund will not begin operating until at least 2022, unless tax revenues on natural gas and other resources remain significantly below the 1 billion shekel ($315 million) requirement to begin investing.
Lieberman said in a statement on Wednesday that the minimum would be met, and that the fund would begin operations at the end of September.
Lieberman said he is taking a new step toward the realization of the wealth fund's funds to the benefit of the public and the future of our children and grandchildren.
It is not yet clear in what financial institutions might invest in, but analysts believe it will be assets such as corporations and stock exchanges on international markets.
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