Globes, Eric Mirowski, 24.03.2020

Following the instructions of Finance Minister Moshe Kahlon, who also serves as chairman of the Israel Lands Council, and Housing Minister Yifat Shasha Biton, Chief of Staff (Israel Land Authority) announced the rejection of payments by companies and winners of RMI tenders. "This is done in light of the problems that are currently causing the paralysis of the economy. The postponement is being done until April 26.

An entrepreneurial company or citizen who wins land auctions is obligated after winning the RMA's offices to receive a payment voucher, which they must pay, according to the dates indicated on the vouchers. The RMA's last tenders were closed a week ago, in which land companies won the construction of 461 apartments. In the Bat Hefer community, which is on the Sharon Green Line, as well as several winnings in industrial tenders in Eilat, and various tenders in Beit Shemesh. The volume of payments for these tenders alone reaches hundreds of millions of shekels, and if additional tenders have been added to them in recent times, the rejection means a significant delay in payments coming to the state coffers.

However, due to the complete paralysis in the economy, winners were given difficulty in obtaining banking assistance, and began to advance land and development planning. In light of this and the problematic situation in which real estate developers are currently underway, the initiative of the Finance and Housing Ministers arose.

According to the announcement issued by the offices, the deferral of payments will be made without interest and linkage, and that the decision to defer payments does not apply to the payment of various royalties to the PMI.

According to the decision, a customer holding a voucher to pay the principal, whose last due dates from March 25 to April 26, will be able to pay the amount specified in the voucher - without the need for a voucher with an updated date, but no later than April 27 This, without the addition of linkage and interest, and without the payment deferral itself, would consider late and / or breach of the terms of the transaction and / or the terms of the tender.

With the postponement of payment deadlines set in the terms of the transaction for the land component and development expenses, April 27 will also postpone execution dates for related commitments, such as the provision of guarantees, the signing of an infrastructure agreement, and the signing of a signed agreement with the PMI. The arrears of payments may be delayed in the delivery of the lots to the winners.

However, it is unclear at this stage whether the postponement dates, from the present days to another month, will suffice for entrepreneurs, since the crisis began more than a week ago and is unlikely to end in April; Therefore, it is likely that updates to this decision will be received later, depending on the situation.

Kahlon commented that "The policy of the Israeli government, as determined by the prime minister, is that wherever we can assist the relief of citizens and businesses in Israel, we will do so. The construction industry is a very important part of the Israeli economy and it is important for us to continue to assist the industry during the Corona crisis."

According to Shasha Biton, "The decision represents another step to help stabilize the construction industry during this challenging period. We are in continuous contact with the contractors' association to address the challenges of the period and minimize damage to home buyers, contractors and entrepreneurs."

Israel Land Authority Director Adiel Shimron explained that this is the realization of the PMI's promise, which constantly monitors developments in the economy and makes decisions accordingly.