foreign aid to Israel:
For several years, the economy of Israel has been surviving on foreign financial aids, the maximum of which comes from the United States. Since 1992, the United States has been offering Israel an additional annual amount of $2 billion in the form of loan guarantees.In a study by several Congressional researchers, from 1974 and 1989, $16.4 billion of military aid coming from the United States has been converted to financial grants by Israel, as per agreement made between the two nations. It is Israel's timely repayment of such loans that has helped the United States to continue giving financial support to the country.
Because of Israel's punctuality in loan repayments, The United States, 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 is given in large amounts at the beginning of the financial year.
