State bank head gives cautious support to gas deal

Bank of Israel governor Karnit Flug has given tentative backing to the controversial gas deal between Israel and an international consortium looking to develop the country’s offshore gas fields.

Flug says the agreement outline “is not ideal” but is the best of all evils.

“We have a large interest in developing the gas fields, especially Leviathan. At this point in time, this is the best alternative. You need to understand — this is the result of negotiations, it’s not ideal, but it’s definitely a reasonable outline,” she says at a conference put on by the Globes financial publication.

The deal, which government officials say will put hundreds of millions of dollars in Israeli coffers, has come under fire from activists and politicians who say it is too favorable to the business consortium.