Mr. President. the General Accounting Office [GAO] has released a study. entitled "Israel: U.S. Loan Guaranties for Immigrant Absorption." It was prepared for the Senates President pro tempore. who also chairs the Appropriations CommitteeSenator ROBERT C. BYRD of West Virginia. In requesting the study. released on February 12. 1992. Senator BYRD asked a number of relevant questions which must be considered as the United States considers extending additional loan guarantees to Israel. One conclusion of the GAO report is that. "it is unlikely that Israel will be able to borrow from external sources anywhere near the desired amount * * * without loan guaranties." To accommodate what could be as much as a 25percent increase in its population in a fairly short time. additional financing is absolutely needed. Extending $2 billion in guarantees per year tor the next 5 years could go a long way toward meeting the immigrants needs. The overall size of this $80 billion challenge is enormous--in 5 years the absorption effort could cost more than Israels entire gross national product in 1991. By cutting government social spending and diverting it to refugees from the Soviet diaspora. and by increasing taxes and borrowing. the Israeli Government has proven its willingness to accommodate the newcomers. But the scope of the challenge is immense. It is unlike anything Israel has experienced since World War II and the creation of the State of Israel.
Keywords matched
Immigrant immigrants refugees