Iran strike would destroy Economy says Bank of Israel Governor


Governor of the Bank of Israel (BOI) warns of dire effects of Israeli strike on Islamic Republic's nuclear facilities; says State gearing to deal with recession


Governor of the Bank of Israel Stanley Fischer said that the BOI has formed a special task force to deal with the economic crisis that is likely to follow an Israeli strike on Iran's nuclear facilities.



"A strike would have dire effects… We are gearing for such a situation," he told Channel 2 news over the weekend.


"The market's situation has changed and things have deteriorated rather quickly," he said.


"We don't know what will happen in the Eurozone – if (the European crisis) turns out to have a snowball effect that we'll have a serious problem on our hands – it will be the same crisis as we had in 2008," Fischer warned.


When asked whether he as governor and the Bank of Israel as the leading financial institution were too complacent in determining the fiscal policies, Fischer said: "The current economic situation is good – not great – and I've said so before.


"We have to give the prime minister and the finance minister the credit they deserve for having the foresight to deal with a looming problem."


The BOI chief added that he is following the soaring housing prices closely and that he does not rule out the possibility that the BOI would have to intervene in some way.


Fischer also dismissed the rumours that he was considering stepping down, as well as rumours that he may run for another office, "Such as that of the finance minister of the president."


Internet site reference: Ynetnews.com

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