A senior Israeli banking official highlighted Sunday that the current situation in Israel is driving investors to withdraw their funds.
He estimated the amount to be in the billions of shekels and noted a significant decline in the purchase of Israeli bonds, a phenomenon he hasn't seen in many years.
Speaking to Ynet, the banking executive observed that, for now, Israeli-owned entities and companies are not transferring their funds abroad, though they are exercising extreme caution with their investments in Israeli firms.
"We are becoming economically unwelcome, almost pariahs in some areas. Many companies are now at risk, as international entities impose an informal boycott on Israeli companies and factories, avoiding investments here," he said.
The senior banking official, a veteran of Israeli finance, stressed, "The government must immediately develop an emergency plan to rescue business entities from a situation that could become a genuine threat to the stability of the Israeli economy. In times of war, we need strategies not only to eliminate figures like Sinwar, though that is important, but also to protect and sustain some of Israel's major economic enterprises, as well as small businesses."
Seffy Zinger, Chairman of the Israel Securities Authority, also raised alarms, noting, "Even before the war, there was a decline in foreign investments in Israel. The war has accelerated this trend. Foreign investors have withdrawn over 34 billion shekels from the Israeli stock market since the beginning of the war—8 billion from equities, 14 billion from government bonds, 6 billion from short-term loans, and 5 billion from corporate bonds. Israeli institutional investors have borne much of this burden."
Despite this, Zinger highlighted the resilience of the Israeli economy, pointing out that since the start of the war, 61.4 billion shekels have been raised in corporate bonds, 4.9 billion in equities and convertibles, and another 103 billion in government bonds. However, he acknowledged the significant challenges that lie ahead for the economy and the capital market in particular.