Foreign aid to Israel: the past activities
For the past couple of years, the economy of Israel has been surviving on foreign financial aids, the maximum of which comes from the United States of America. It is since 1992 that America has been offering this Middle-Eastern country an additional annual amount of $2 billion in the form of loan guarantees. In fact, according to the studies made by a handful of Congressional researchers, from 1974 and 1989, around $16.4 billion of military aids coming from America have been converted to financial grants by Israel, as per the settlement made between the two nations on the matter. However, it is Israel’s timely repayment of such loans that has helped United States to continue giving financial support to the country.Keeping in mind Israel’s punctuality in loan repayment, America since 1984 has adopted a policy that the total economic aid provided to Israel must be made either equivalent to or more than the country’s annual repayment of U.S. debts. When other countries receive American economic aid in quarterly installments, foreign aid to Israel since 1982 comes in huge amount at the beginning of the financial year.
