Interest Rates and Gaps

2010 2011 20123.85% 4.79% 3.70%

7.26%8.11%

7.36%

3.41% 3.32% 3.66%

- קטנים לזעירים גדולים עסקים בין הריביות פער- קטנים זעירים לעסקים ריבית

Interest Gaps between big and small & micro Businesses

Big Businesses – Interest Rates Small & Micro Businesses - Interest Rates

The ratio between deposits & given credit

0%

20%

40%

60%

80%

100%

120%

108.74%77.17%

60.53%

קטנים עסקים ) בינוניים ) עסקים מסחרי סקטור) גדולים ) עסקים עסקי סקטור Business Sector

(Big businesses )Commercial Sector

(Medium businesses )Small

businesses

Expenses and Income of Banks from Credit and Deposits

על מריבית הכנסותמסך ) כשיעור האשראי

) שניתן האשראי

על ממרווח הכנסותמסך ) כשיעור הפקדונות

הפקדונות(

הפסדי בגין הוצאות שיעוראשראי

0%

1%

2%

3%

4%

5%

קטנים עסקים ) בינוניים ) עסקים מסחרי סקטור ) גדולים ) עסקים עסקי Business Sectorסקטור(Big businesses )

Commercial Sector (Medium businesses )

Small businesses

Rate of Expenses due to credit loss

Net income margin on deposits (% from total deposits)

Income from Interest on deposits (% from total credit given)

MicroUp to 5

employees1M NIS

How small is small ?

MediumUp to 100 employees100M NISSmall

Up to 20 employees

10M NIS

100205

10

1

100

Turnover

Employees

State guarantee fund

Fund Size 4.25 Billion NIS : State - 500 million ILS (100 budget, 400 guarantee)

Guarantee 70% state guarantee for existing companies. 85% state guarantee for new companies.

Loan Size Up to 500 thousand NIS to businesses with up to a turnover of 6.25 million NIS.8% of turnover for businesses with up to a turnover of 100 Million NIS.

Participating banks

“Hapoalim”, “Mizrahi-Thfahot”, “Mekantil Discount” and “Ozar Hayal”

Fund programsFor new businesses which have not yet started their operations

Investments – Investment in infrastructure, renovation, equipment, IT, means of production

Working Capital - bridging the payment gaps: customers - suppliers, customers - employees, increasing inventory, personnel recruitment etc.

Integrated - includes aspects of business development and working capital

The fast Route – Loans of up to 100 Thousand NIS for business with up to 3 Million NIS

Firm Sends Initial Application

Coordinating body asks for additional

documents if (needed)

Meeting and a preliminary analysis of the application and

writing a review

Positive recommendations

Application is sent to the bank for its review

Credit committeeAppeal committee

approval rejectionApproval - firm is

allowed to ask for a committee in another

bank (up to two banks)

Rejection - firm is allowed to ask for a

committee in another bank (up to two banks)

Application Process

Notifying the business - possibility to appeal

Negative recommendations

State Guarantee FundApril 2012 – December 2013

Total* Medium Small

12,196 649 11,547 Total of complete application Loan Request sent

6,794 443 6,351 Approved Loans

3,027 995 2,032 Total Number of Loans given

*Cumulative (from the beginning of the Fund) over 3 billion ILS