Israel, Just Downgraded, Readies Bond Spree to Pay for War Against Hamas
- Borrowing to reach near-record levels with budget under strain
- Israel has increased its issuance of private bonds abroad
Israeli soldiers on an armoured personnel carrier rolling back from the Gaza Strip.
Photographer: Menahem Kahana/AFP/Getty Images
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Israel will have to sell a near-record amount of bonds this year to fund its war against Hamas, according to several finance ministry officials with knowledge of the matter.
The task got more complicated on Friday, when Israel’s credit rating was downgraded for the first time ever. Moody’s Investors Service cut the government one level to A2. While Israel’s still well within investment grade territory — and now on a par with the likes of Iceland and Poland — the move underscored the economic toll the conflict’s taking on the nation.