Globes 29.12.2016 (Translated)
Bank Mizrahi Tefahot insured Sales Law Guarantees for Housing Bonds contracts in the amount of 15 Billion NIS. They are not the first to join, as Bank Leumi, Hapoalim and Discount already insured their Housing Bonds Portfolios. This transaction will improve the capital adequacy ratio of the Bank by 0.25% and improves its ability to grow in its Credit portfolio.
Bank Mizrahi Tefahot, headed by Eldad Fresher, announced today that an agreement has been signed to purchase insurance policies in respect of credit exposures Sales Law guarantees granted by the Bank.
The insurance covers 80% of the guarantees granted by the Bank in the amount of about 15.5 billion and covered by global (Re)insurers.
The sales law guarantee is a bank mandatory guarantee to secure the apartment purchaser rights against the developer in case he reaches difficulties.
In the past 18 months, similar Insurances deals amounted to over several billions NIS were contracted with Discount, Leumi & Hapoalim Banks.
On September 2016, the capital adequacy ratio was 9.85%, so following this transaction alone the capital adequacy ratio is expected to cross 10% mark. The improvement in the capital adequacy ratio will enable the Bank to accelerate the growth of its credit portfolio.