Ex-Bank of Israel chief: Hope government heeds economic warnings on judicial overhaul

Then-Bank of Israel governor Karnit Flug at a press conference in Jerusalem on March 28, 2018. (Hadas Parush/Flash90)
Then-Bank of Israel governor Karnit Flug at a press conference in Jerusalem on March 28, 2018. (Hadas Parush/Flash90)

Former Bank of Israel governor Karnit Flug says she hopes Prime Minister Benjamin Netanyahu’s government heeds warnings from JP Morgan and other financial firms that its far-reaching plans to overhaul the judiciary could negatively impact Israel’s credit rating.

Speaking with Army Radio, Flug adds that she hopes for “changes with broad agreement.”

She also addresses a television report that Netanyahu has tapped his longtime confidant, Strategic Affairs Minister Ron Dermer, to reach out to banks and credit rating agencies regarding the judicial proposals. Flug predicts the talks will end up being handled by government finance officials and not a political appointee.

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