Jerusalem, 19 June 1996

BANK OF ISRAEL GOVERNOR JACOB FRENKEL TO HEAD PRIME MINISTER’S ECONOMIC ADVISORY COUNCIL

(Communicated by Shai Bazak, Prime Minister’s Media Advisor)

Bank of Israel Governor Prof. Jacob Frenkel will head an economic council which will advise Prime Minister Benjamin Netanyahu on economic issues, the Prime Minister’s Media Adviser announced yesterday, Tuesday 18.6.96. Frenkel will also participate regularly in all government discussions on economic issues, in the economic cabinet and on the ministerial committee on privatization. Prof. Frenkel will also advise the Prime Minister during preparation of the state budget. Prime Minister Netanyahu intends to take advantage of Frenkel’s professional capabilities and looks forward to receiving his assistance in the creation of economic policies in all spheres.

The Prime Minister stressed the importance of the Governor continuing to contribute and advance Israel’s economy. Therefore, after consulting with newly appointed Finance Minister Dan Meridor, he asked Prof. Frenkel to continue in a second term as Bank of Israel Governor. This request will be brought to the cabinet for approval in the near future.

Prime Minister Netanyahu very much values Prof. Frenkel’s abilities and his high level of professionalism and will unequivocally support him and the policies he takes. Bringing down inflation to Western levels represents a central aim of his economic policies. It is therefore important to guard the Governor’s, and the Bank of Israel’s, total independence in order for him to act to achieve the goals.

The Prime Minister stressed the importance of integrating Israel’s economy into the global economy and Israel’s participation in financial frameworks. Due to Prof. Frenkel’s professional standing and his reputation within the international community, Mr. Netanyahu told the Governor that he intends to make use of him in order to reach this goal.